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| Gross Domestic Product | is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. |
| Gross National Product | is the value of all goods and services made by a country's residents and businesses, regardless of production location. GNP counts the investments made by U.S. residents and businesses—both inside and outside the country—and computes the value of all products manufactured by domestic companies, regardless of where they are made. |
| Consumer Sector | part of the economy refers to the subunit where goods are sold directly for consumption |
| Business Sector | a part of the economy where businesses sell finished products and offer services. Creates jobs. |
| Government Sector | provides public services and regulates several economic activities. They receive taxation revenue from households and firms and spend this money on public goods and services, such as roads, parks, schools, and hospitals. |
| Foreign Sector | a macroeconomic sector that encompasses all economic activities related to transactions with overseas countries |
| Monetary Policy | is the policy adopted by a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability |
| Fiscal Policy | refers to the use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions. |
| Keynesian Economic Theory | belief that advocates for increased government spending and lower taxes to stimulate demand. Spend when the economy is bad and spend less when economy is good. |
| Income taxes | a levy imposed on individuals and corporations, computed on the basis of income, by a government |
| Excise Taxes | a legislated tax on specific goods or services at the time they are purchased. A.K.A. "Sin Tax" |
| Progressive income taxes | a tax rate that increases as taxable income increases. |
| Regressive income taxes | a tax that is applied uniformly regardless of income. |
| Proportional income taxes | an income tax system that levies the same percentage tax to everyone regardless of income. |
| Deficit | a shortfall or loss and is the opposite of a surplus |
| Surplus | describes the amount of an asset or resource that exceeds the portion that's actively utilized. |
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