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Definition
| the theoretical point at which all citizens who want to be employed have a job. |
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Definition
| a deep, widespread downturn in the economy like the great depression of the 1930's |
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Term
| council of economic advisers |
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Definition
| a group of economic advisers created by the employment act of 1946 which provides objective data on the state of the economy and makes economic policy recommendations to the president |
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Term
| Servicemen's Readjustment Act (GI Bill) |
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Definition
| effort to make sure that returning veterans could find jobs. provided higher education assistance to 7.8 million veterans by the time the law expired in 1956 and low interest home mortgages for 2.4 million veterans. |
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Definition
| the increase in the price of consumer goods over time |
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Definition
| long term economic planning for big businesses becomes much more difficult. investors demand high interest rates to compensate for the added risk of future inflation |
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Definition
| a stagnant economy with inflation; result of high unemployment and inflation |
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Definition
| sum of the inflation rate and the unemployment rate; typically unemployment and inflation are not high at the same time |
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Term
| government and the economy |
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Definition
| government doesn't usually get involved with the economy and only the free market and property rights for businesses |
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Term
| gross domestic product (GDP) |
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Definition
| measure of the overall economic output and activity of the country |
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Term
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Definition
| a spending plan in which the government's expenditures are equal to its revenue |
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Term
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Definition
| the amount by which a government's spending in a given fiscal year exceeds its revenue. |
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Term
| what do large deficits do? |
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Definition
| take a bite out of current spending, total federal debt is a burden on future generations, public borrowing "crowds out" private borrowing |
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Definition
| the balance of a country's receipts and its payments in international trade and investment; difference between nations receipts and payments |
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Definition
| a measure of how much more a nation imports than it exports |
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Definition
| imports become more expensive which can increase inflation rates |
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Definition
| government decisions about how to influence the economy by taxing and spending. |
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Definition
| government decisions about how to influence the economy using control of money supply and interest rates |
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Term
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Definition
| the processes carried out in congress to determine how government money will be spent and revenue will be made. |
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Term
| budget and accounting act of 1921 |
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Definition
| shifting from the power of money from congress to presidents power |
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Term
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Definition
| process by which congressional committes are held to the spending targets specified in the budget resolution. During this time the house and senate budget committees combine the budgetary changes from all the legislative committees into a reconciliation bill to be approved by congress |
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Definition
| important rule in deficit reduction |
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Term
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Definition
| an agency founded in 1962 to negotiate with forgein governments to create trade agreements resolve disputes and participate in global trade policy organization |
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Term
| national economic council |
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Definition
| a group of economic advisers created in 93 to work with the president to coordinate economic policy. |
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Definition
| an independent agency that serves as the central bank of the U.S to bring stability to the nation's banking system |
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Term
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Definition
| a cabinet level agency that is responsible fir managing the federal government's revenue. It prints currency, collect taxes and sells government bonds. |
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Term
| federal reserve act of 1913 |
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Definition
| established the federal reserve system to bring stability and continuity to the nation's banking system. |
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Term
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Definition
| the group of seven presidential appointees who govern the federal reserve system |
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Term
| jobs of the treasury department |
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Definition
| managing federal finances, collecting taxes ,duties and monies pard to and due to the U.S and paying all bills of the u.s, producing currency and coinage- some over lap with the feds. |
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Term
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Definition
| the theory that governments should use economic policy, like taxing and spending to maintain stability in the economy- connected to fiscal policy. soften effects of recession by stimulating the economy when overall demand is low. |
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Term
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Definition
| the theory that lower tax rates will stimulate the economy by encouraging people to save, invest and produce more goods and services |
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Term
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Definition
| normal pattern of expansion and contraction of the economy, mostly during divided gov. but does happen during unified government |
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Term
| 787 billion american recovery and reinvestment act of 2009 |
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Definition
| designed to stimulate the economy and create jobs, spent way to much on it |
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Term
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Definition
| expenditures that are required by law, such as the funding for social security |
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Term
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Definition
| expenditures that can be cut from the budget without changing the underlying law. |
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Term
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Definition
| taxes that take longer share of poor people's income than wealthy people's income such as sales taxes and payroll taxes |
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Term
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Definition
| taxes that require upper income people to pay a higher tax rate than lower income people, such as income taxes |
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Term
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Definition
| idea that the amount of money in circulation (money's supply) is the primary influence on economic activity and inflation. |
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Term
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Definition
| minimum amount of money that a bank is required to have on hand to back up its asset |
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Term
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Definition
| interest rate that a bank must pay on a short term loan from the federal reserve bank |
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Term
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Definition
| interest rate that a bank must pay on an overnight loan from another bank. |
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Term
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Definition
| process by which the federal reserve system buys and sells securities to influence the money supply |
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