The danger that protecting an individual or institution from the consequences of failure will encourage excessively risky behavior.
Gross Domestic Product (GDP)
the total value of final goods and services produced in a country in a given year
Federal government program that pays for certain health care expenses for citizens 65 or older;managed by the Social Security Administration. The costs are met by a tex on wages and salaries.
A combination federal and state medical assistance program designed to provide comprehensive and quality medical care for low-income families with special emphasis on children, pregnant women, the elderly, the disabled, and parents with dependent children who have no other way to pay for healthcare. Coverage varies from state to state. The program is funded out of general government revenues.
National Health Insurance
A plan under which the government provides basic health insurance to all citizens. In most such plans, the program is funded by taxes on wages or salaries.
An economic downturn marked by a decrease in the GDP and increase in unemployment.
The inability of those who are in the labor force to find a job; defined as the total number of those in the labor force actively looking for a job but unable to find one.
a general increase in the cost of goods and services
the federal government's use of spending and taxation policies to affect overall business activity
A school of economic thought that tends to favor active federal government policymaking to stabilize economy-wide fluctuations, usually by implementing discretionary fiscal policy.
the situation in which the government's expenditures are greater than its tax revenue
U.S. Treasury Securities
Bonds and bond-like securities issued by the U.S. Treasury when it borrows.
Public Debt, or National Debt
The total amount of debt carried by the federal government.
Federal Reserve System
The system created by congress in 1913 to establish banking practices and regulate currency in circulationand the amount of credit available
Federal Open Market Committee
The most important body within the Federal Reserve System. This decides how monetary policy should be carried out.
The utilization of changes in the amount of money in circulation to alter credit markets, employment, and the rate of inflation.
A legal method by which individuals and businesses are allowed to reduce the tax liabilities they owe to the government.
tax where percentage of income paid in tax rises as level of income rises
Tax where percentage of income paid in tax goes down as income rises