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19 Cards in this Set
- Front
- Back
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business cycles
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fluctuations btwn expansion and recession that are a part of modern capitalist econ.s.
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laissez-faire
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a French term, literally meaning " to allow to do, to leave alone." It is a hands-off gov't policy that is based on the belief that gov't involvement in the econ. is wrong.
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interventionist state
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alternative to the laissez-faire state; the gov't takes an active role in guiding and managing the private econ.
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economic regulation
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Gov't regulation of business practices, industry rates, routes, or areas serviced by particular industries
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social regulation
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gov't regulation of quality and safety of products as well as the conditions under which goods and services are produced
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deregulation
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a reduction in market controls (such as price fixing, subsides, or controls on who can enter the field) in favor of market-based competition
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economic stability
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A situation in which there is economic growth, rising national income, high employment, and steadiness in the general level of prices.
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inflation
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a rise in the general price levels of an econ.
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recession
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a short-term decline in the econ. that occurs as investment sags, production falls off, and unemployment increases
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monetary policy
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a form of gov't regulation in which the nation's money supply and interest rates are controlled
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money
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a system of exchange for goods and services that includes currency, coins, and bank deposits
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Board of Governors
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in the Fed. Reserve System, a seven-member board that sets member banks' reserve requirements, controls the discount rate, and makes econ, decisions.
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reserve requirements
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gov't requirements that a portion of member banks' deposits must be retained to back loans made
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discount rate
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the rate of interest at which member banks can borrow money from their regional Federal Reserve Bank.
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open market operations
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the buying and selling of gov't securities by the federal reserve bank in the securities market.
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fiscal policy
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federal gov't policies on taxes, spending, and debt management, intended to promote the nation's macroeconomic goals, particularly w/respect to employment, price stability, and growth
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federal budget deficit
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the amount by which federal expenditure exceeds federal revenue
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gross domestic product (GDP)
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the total market value of all goods and services produced in a country during a year
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global warming
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the increase in global temps that results from carbon emissions from burning fossil fuels such as oil and coal.
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