economic and fiscal policy

fiscal policy

the use of government spending and revenue collection to influence the economy

monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

inflation

A continuous rise in the price of goods and services

stagflation

a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation)

unemployment

Measures the number of people who are able to work, but do not have a job during a period of time.

gross domestic product

The sum total of the value of all the goods and services produced in a nation

tariff

tax on imports

national debt

The sum of government deficits over time.

antitrust

government intervention to alter market structure or prevent abuse of market power

deregulation

the removal of some government controls over a market

Federal Reserve Board

A seven-member board that sets member banks reserve requirements, controls the discount rate, and makes other economic decisions.

excise tax

a tax on the production or sale of a good

progressive tax

A tax for which the percentage of income paid in taxes increases as income increases

regressive tax

A tax for which the percentage of income paid in taxes decreases as income increases

sales tax

A tax on a sale of merchandise or services

laissez-faire economics

economic system where government should not interfere in the marketplace

monopoly

A market in which there are many buyers but only one seller.

trust

A group of corporations run by a single board of directors

monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

budget deficit

a shortfall of tax revenue from government spending

Keynesian economics

Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms.

protectionism

Economic policy of shielding an economy from imports.

trade deficit

An excess of imports over exports