Monday Test & Quiz

Keynesian Economics

An economic theory by John Maynard Keynes advocating government intervention to stimulate the economy during depressions through increased public spending.

Effective Demand

The actual amount of consumer and investor spending in an economy, which Keynes believed should be boosted by government spending.

Paradox of Thrift

A concept introduced by Keynes stating that excessive saving during economic downturns can worsen economic conditions.

Deficit Spending

Government spending that exceeds revenue, which Keynes advocated during depressions to create jobs and stimulate economic activity.

Fiscal Policy

Government policies regarding taxation and spending, emphasized by Keynes over monetary policy during economic slumps.

Short-term Economic Relief

Keynesian economics prioritizes immediate economic support to prevent prolonged suffering and extreme political outcomes.

New Deal

A series of programs and policies implemented in the 1930s influenced by Keynesian economics to counter the Great Depression.

Supply-Side Theory

An economic theory emphasizing tax cuts to stimulate growth, often contrasted with Keynesianism.

Laissez-faire Economy

An economic system with minimal government intervention in transactions between citizens and businesses.

Command-and-Control Economy

An economic system where the government dictates production amounts and prices, as seen in the Soviet Union.

Mixed Economy

An economic model, like that of the U.S., combining free market principles with government regulation.

Economic Indicators

Metrics used to monitor the economy, including GDP, unemployment rate, and inflation.

Gross Domestic Product (GDP)

The total value of goods and services produced in an economy, used as an economic indicator.

Economic Recession

A period defined by two consecutive quarters of negative GDP growth.

Inflation

The rise in prices of goods and services, measured by the Consumer Price Index (CPI).

Partisan Behavior

The tendency of political parties to critique each other's ideologies rather than cooperate.

Republican Party

A political party associated with conservatism, favoring less government interference in the economy.

Democratic Party

A political party associated with liberalism, advocating for more government intervention in economic matters.

Medicare

A federal program providing health insurance to senior citizens and the disabled, established in the 1960s.

Medicaid

A joint federal-state program providing health services for low-income Americans, established in 1965.

Patient Protection and Affordable Care Act (ACA)

A healthcare reform law aimed at expanding insurance coverage and reducing costs, signed into law in 2010.

School Choice

Reforms allowing parents to choose schools for their children, often involving vouchers for private education.

Engel v. Vitale

A Supreme Court case addressing government-sponsored prayer in schools, related to the establishment clause.

Zelman v. Simmons-Harris

A Supreme Court case ruling on a school voucher program, affirming educational assistance for poor children without violating the establishment clause.