Unit 9 Vocabulary

Front 1

Entitlement

Back 1

A required government expenditure that continues from one year to the next.

Front 2

FiscalPolicy

Back 2

The government’s use of spending and taxation to influence the economy.

Front 3

Tax

Back 3

The money that people and business pay to support the activities of the government.

Front 4

Gross Domestic Product

Back 4

The total amount of goods and services produced within a country.

Front 5

Aggregate Demand

Back 5

The total demand of goods and services at a given price and given time.

Front 6

ExpansionaryPolicy

Back 6

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

Front 7

ContractionaryPolicy

Back 7

Intention to decrease the overall money supply to discourage spending.

Front 8

Discretionary Spending

Back 8

Spending that congress decides on each budget year.

Front 9

Mandatory Spending

Back 9

Spending that congress must by law include in each year’s budget.

Front 10

Recession

Back 10

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

Front 11

Inflation

Back 11

Prices of goods and services for goods and services rise faster than employee wages and or the buying power of currency.

Front 12

Deflation

Back 12

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

Front 13

Progressive Tax

Back 13

Government tax charges increase based on the amount of personal income.