| A | B |
|---|
| Business Cycle | The ups and downs of the economy. |
| Inflation | A general rise in prices. |
| Recession | An economic slowdown. |
| Depression | A severe recession. |
| Fiscal Policy | The way the gov't taxes & spends money. |
| Monetary Policy | The regulation of the money supply. |
| GDP | The Gross Domestic Product |
| Personal Income | Total amt of income before taxes. |
| Disposable Income | Amt of money left over after taxes have been paid. |
| Interest Rates | The Federal Reserve will change these to influence the economy. |
| 1929 | The Great Depression |
| 1913 | When Congress created the Fed. |
| 12 | The number of districts the Fed has. |
| Control $ supply | MOST important job of the Fed. |
| During inflation, ? to IR | Increase |
| During recession, ? to IR | Reduce |
| Reserve Requirement | Amt of $ banks must have in reserves. |
| Discount Rate | The amt banks charge each other for short-term loans. |
| Sell | Do this to bonds during inflation. |
| Purchase | Do this to bonds during a recession. |
| 16th | Amendment that gives Congress the power to tax. |
| Clear checks | Important daily job of the Fed. |
| If the gov't raises taxes, | then we will have less funds for private spending. |
| If the gov't reduces taxes, | then we will have more funds for private spending. |
