| A | B |
|---|
| Private Goods | goods that, when consumed by one individual, cannot be consumed by another |
| Public Goods | good owned collectively like highways and libraries |
| monopoly | sole provider of a product- no competition |
| business cycle | alternating periods of growth and decline that the economy goes through |
| expansions | businesses are growing and expaning, low unemployment rate |
| recessions | downward slope on the business cycle- high unemployment rate |
| unemployment rate | percentage of people in the civilian labor force who are not working but are looking for jobs |
| fiscal policy | federal government's use of spending and taxation policies to affect overall business activity |
| consumer price index | measure of change in price over time of specific group of goods and services |
| stock market | good indicator of the health of the economy- buy and sell stocks |
| Federal Reserve System | set up the Federal Banking system |
| Monetary Policy | policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit |
| mandatory spending | does not need annual approval |
| discretionary spending | does need annual approval |
| appropriations bills | bills that deal with money - must start in the Senate |
| sales tax | tax paid on items that you buy |
| property tax | tax on cars and houses |
| income tax | tax on money earned through working |
| surplus | have more money than you spend |
| deficit | spend more than you make |
