| A | B |
|---|
| Consumer Price Index | calculates a change in prices for selected items |
| Deflation | A period in which prices for goods and services DECREASE |
| Federal Reserve | Central Banking System of the U.S. |
| Fiscal policy | give the government the right to impose taxes and spend the money |
| Gross Domestic Product | the total value of goods and services produced per year |
| Income tax | one of the largest source of income for the federal government, tax on personal income |
| Laissez faire | government should NOT interfere in our economy |
| Macroeconomics | studies the ENTIRE economy or the economy as a WHOLE |
| Monetary policy | affects our money supply, credit, interest rates and banking systems |
| Payroll tax | one of the largest source of income for the federal government, collected on wages for social security and Medicare |
| Sales tax | a tax paid by EVERYONE WHO SPENDS MONEY on consumption |
| Unemployment | the number of people who do NOT have jobs |
| congress | determines our fiscal policy |
| recession | occurs when GDP declines for 6 months or more |
| security | social security and Medicare provide security for elderly |
