Chapter 12 Vocabulary

political ideology

a set of beliefs about the desired goals and outcomes of a process of governance.

right

something guaranteed, that the government cannot take away.

privelage

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 set of positions on major issues.

party identification

an individual’s attachment to a political party

conservative

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

liberalism

an ideology favoring less government control over social behavior and more greater regulation of businesses and of the 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 governments intrude as little as possible in the economic transactions between citizens and businesses

command-and-control economy

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

mixed ecomomy

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 an 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 the 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 taxes and spending to attempt to lower unemployment, support economic growth and stabilize the economy.

Federal Reserve System

a board of governors, Federal Reserve Banks, and 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