| A | B |
|---|
| economic feedom | The freedom to own property, to make a profit, and to make choices about what to produce, buy, and sell. |
| trust | A group of companies organized to benefit from the high prices they all agree to charge |
| monopoly | A single business with the power to control prices in a market |
| business cycle | A repeated series of "ups" of growth and "downs" of recession |
| monetary policy | Regulation of the money supply by the Federal Reserve System |
| fiscal policy | A government's decisions about the amount of money it spends and the amount it collects in taxes |
| inflation | A general rise in the prices of goods and services throughout the economy |
| gross domestic product (GDP) | The total dollar value of all final goods and services produced and sold in the country in a year |
| federal budget | The government's plan for how it will raise and spend money. |
| deficit | The amount by which government spending is greater than government's income |
| surplus | the amount by which the government's income is greater than government spending |
| national debt | the total amount of money the government owes to lenders |
| Federal Reserve System: (the Fed) | The central bank of the United States, which provides services to banks, regulates their activities, and controls the nation's monetary policy |
| Board of Governors: | Seven people appointed by the President for 14 year terms who are responsible for running the Federal Reserve System as a whole |
| recession | A slowdown in economic activity and production |
