fiscal and monetary policy

Supply-side fiscal policy

Belief that economic growth and full employment are best created through a high supply of products.

Reaganomics

A nickname for supply-side fiscal policy, emphasizing tax cuts and deregulation.

Trickle-down economics

The theory that benefits for the wealthy will eventually trickle down to everyone else in the economy.

Tax cuts

Reduction in the amount of money taken by the government from individuals and businesses.

National deficit

Occurs when government spends more than it takes in each year.

National debt

The total amount borrowed to pay for yearly deficits.

Entitlements

Mandatory spending programs like Medicare and Medicaid.

Monetary policy

A set of tools to control the money supply and promote sustainable economic growth.

Currency

Paper bills and coins available to the public.

Demand deposits

Balances in bank accounts that individuals can access on demand.

Central bank

An institution that oversees the banking system and regulates the money supply.

The Federal Reserve (the Fed)

The central bank of the United States responsible for regulating the money supply.

Privatization

The process of transferring ownership of a business or public service from the government to private individuals or organizations.

Deregulation

The reduction or elimination of government rules controlling how businesses can operate.