chapter 12 vocab

right

something guaranteed, that the government cannot take away

privilege

something a person may obtain or receive, but that the government can take away

party ideology

a party’s philosophy about the proper role of government and its consistent set of position on major issues

party identification

an individual’s attachment to a political party

conservatism

an ideology favoring more control of social behavior, fewer regulations on businesses, and less government interference in the economy

liberalism

an ideology favoring less government control over social behavior and more regulation of business in the favor of economy

libertarianism

an ideology favoring very little government regulation and intervention beyond protecting private property and individual liberty

laissez-faire economy

economic policy in which government intrude as little as possible in the economic transactions between citizens and businesses

command-and-control economy

economic policy in which the government dictates much of a nation’s economic activity, including the amount of production and prices for goods

mixed economy

economic policy in which many economic decisions are left to individuals and businesses, with the government regulating economic activity

gross domestic product (GDP)

the total value of goods and services produced by the economy

economic recession

a period of decline in economic activity, typically defined by two consecutive quarters of negative GDP growth

unemployment rate

the percentage of people actively looking for work who cannot find jobs

inflation

the rise in prices of goods and services

consumer price index (CPI)

the cost of a fixed basket of goods and services over time, used to measure the cost of living

fiscal policy

government use of taxing and spending to attempt to lower unemployment, support economic growth, and stabilize the economy

federal reserve system

board of governors, federal reserve banks, and a member banks responsible for monetary policy

monetary policy

a set of economic policy tools designed to regulate the amount of money in the economy

medicare

a federal program that provides health insurance to seniors and the disabled

medicaid

a federal program that provides health care for the poor

monetary theory

match the growth of the money supply to the growth in economic productivity

keynesianism

stimulate the economy during times of recession by spending money to encourage economic growth

supply-side theory (reaganomics, trickle-down economics)

stimulate the economy by cutting taxes to encourage businesses to grow and taxpayers to spend more money