| A | B |
|---|
| Gross Domestic Product (GDP)- | the total value of final goods and services produced in a year. |
| Inflation | a rise in the cost of goods and services |
| 16th amendment | this amendment to the U.S. constitution authorizes Congress to tax incomes ( personal and business) |
| Public Goods | items provided by the government ( eg. Roads, libraries, schools…) |
| Public Services | work performed by the government such as welfare services … Dept. of Motor vehicles, medicare, medicade |
| Fiscal Policy | The governments ability to influence the economy through taxing, borrowing and spending |
| Monetary Policy | The governments ability to influence the economy by regulating the supply of money through the Federal Reserve Bank |
| Discount Rate | the interest rate the Federal Reserve charges member banks to borrow money |
| Reserve Requirement | The amount of money by law banks must set aside to be held on hand as a resereve balance. (A percentage of their deposits) |
| Consumer Price Index | The measure of the monthly price changes of a sample set of consumer goods and services. |
| Federal Reserve Bank | The central bank of the United States which issue currency, loans reserves to member banks and regulates the money supply. |
| Productivity | the amount of output per unit of input over a period of time. |
