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13 Cards in this Set
- Front
- Back
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Entitlement
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A required government expenditure that continues from one year to the next
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Fiscal policy
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A government's use of spending and taxation to influence the economy
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Tax
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The money that people and businesses pay to support the activities of the government
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Gross Domestic Product (GDP)
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The total amount of goods and services produced within a country
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Aggregate demand
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The total demand of goods and services at a given price and given time
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Expansionary policy
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Intention to INCREASE the overall money supply to encourage economic growth or to decrease inflation
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Contractionary policy
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Intention to DECREASE the overall money supply to discourage spending
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Discretionary spending
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Sending that Congress decides on each budget year
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Mandatory spending
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Sending that Congress must by law include in each year's budget
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Recession
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Two consecutive fiscal yearly quarters in which there is negative economic growth by GDP
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Inflation
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Prices of goods and services rise faster than employee wages and/or the buying power of currency
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Deflation
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Decline in prices for goods and services usually caused by decrease in the money supply or available credit
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Progressive Tax
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Government tax charges increase based on the amount of personal income
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