Gov't And Economy

Front 1

Entitlement

Back 1

A required government expenditure that continuesfrom one year to the next.

Front 2

Fiscal policy

Back 2

A government’s use of spending and taxation toinfluence the economy.

Front 3

Tax

Back 3

The money that peopleand businesses pay to support the activities of the government.

Front 4

Gross Domestic Product (GDP)

Back 4

The total amountof goods and services produced within a country.

Front 5

Aggregate demand

Back 5

The total demandof goods and services at a given price and given time.

Front 6

Expansionary policy

Back 6

Intention to increase the overall money supply to encourageeconomic growth or to decrease inflation.

Front 7

Contractionary policy

Back 7

Intention to decreasethe overall money supply to discourage spending.

Front 8

Discretionary spending

Back 8

Spending thatCongress decides on each budget year.

Front 9

Mandatory spending

Back 9

Spending that Congress must by law include ineach year’s budget.

Front 10

Recession

Back 10

Two consecutive fiscal yearly quarters in whichthere is negative economic growth by GDP.

Front 11

Inflation

Back 11

Prices of goods and services rise faster thanemployee wages and/or the buying power of currency.

Front 12

Deflation

Back 12

Decline in prices for goods and services usuallycaused by decrease in the money supply or available credit.

Front 13

Progressive tax

Back 13

Government tax charges increase based on theamount of personal income.