Unit 6 Terms

Question 0

recession

Answer 0

when economy shrinks instead of grows

Question 1

inflation

Answer 1

sustained rise in general price level of goods and services

Question 2

fiscal policy

Answer 2

federal governments use of taxation and spending policies to affect overall buisness activity

Question 3

Keynesian Economics

Answer 3

school of economic thought that tends to favor active federal government policy making to stabalize economy wide fluctuations. usually by implementing discretionary fiscal policy

Question 4

budget deficit

Answer 4

government expenditures that exceed receipts

Question 5

monetary policy

Answer 5

utilization of hanged in the amount of money in circulation to alter credit markets, employment, and rate of inflation

Question 6

Federal Reserve System

Answer 6

nations central banking organization

Question 7

wage and price controls

Answer 7

government imposed controls on the maximum prices that may be charged for specific goods and services plus controls on permissible wage increases