Term
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Definition
| the amount of goods and services in the economy that will be purchased at all possible price levels |
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Term
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Definition
| a government program that changes automatically depending on GDP and a person's income |
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Term
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Definition
| the seven-member board that oversees the Federal Reserve System |
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Term
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Definition
| a situation in which the government spends more than it takes in |
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Term
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Definition
| a situation in which the government takes in more than it spends |
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Term
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Definition
| the process by which the banks record whose account gives up money and whose account receives money when a customer writes a check |
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Term
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Definition
| a legal entity owned by individual stockholders |
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Term
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Definition
| theory that inflation occurs when producers raise prices to meet increased costs |
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Term
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Definition
| unemployment that rises during economic downturns and falls when the economy improves |
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Term
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Definition
| a sustained drop in the price level |
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Term
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Definition
| theory that inflation occurs when demand for goods and services exceeds existing supplies |
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Term
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Definition
| a school of economics that believes government spending and tax cuts help an economy by raising demand |
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Term
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Definition
| rate the Federal Reserve charges for loan to commercial banks |
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Term
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Definition
| describes demand that is very sensitive to change |
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Term
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Definition
| in banking, reserves of cash more than the required amount |
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Term
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Definition
| the income people receive for supplying factors of production: land, labor, or capital |
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Term
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Definition
| the use of government spending and revenue collection to influence the economy |
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Term
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Definition
| a general increase in prices |
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Term
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Definition
| a representative collection of goods and services |
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Term
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Definition
| entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes |
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Term
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Definition
| a national health insurance program that helps pay for health care for people over age 65 or who have certain disabilities |
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Term
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Definition
| economic system that combines the free market with limited government involvement |
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Term
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Definition
| the actions of the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy |
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Term
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Definition
| all the money the federal government owes to bondholders |
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Term
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Definition
| the buying and selling of government securities to alter the supply of money |
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Term
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Definition
| the most desirable alternative given up as the result of a decision |
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Term
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Definition
| a business organization owned by two or more persons who agree on a specific division of responsibilities and profits |
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Term
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Definition
| the percentage of people who live in households with income below the official poverty line |
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Term
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Definition
| a tax for which the percent of income paid in taxes increases as income increases |
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Term
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Definition
| theory that too much money in the economy causes inflation |
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Term
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Definition
| a tax for which the percent of income paid in taxes decreases as income increases |
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Term
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Definition
| a business owned and managed by a single individual |
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Term
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Definition
| unemployment that occurs when workers' skills do not match the jobs that are available |
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Term
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Definition
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Term
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Definition
| monetary policy that reduces the money supply |
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