| A | B |
|---|
| 16th Amendment | Passed in 1913. It allows Congress to levy taxes on business and personal income. |
| Public Goods/Services | The government provides (by using taxes, borrowing) interstates, postal system, National Defense, which provide benefits to all. |
| Negotiated Contracts | Agreements between individuals, enforceable by law, which protect private property rights |
| Private Financial Institutions | Banks, Savings & Loans, credit unions, brokerages who receive deposits (pay interest) make loans (charge interest) and sell stocks & bonds. |
| Monopoly/Anti-Trust | When one company controls all the supply of a particular good or service. |
| Federal Reserve | Central Bank of US which regulates the amount of money in circulation to prevent bank failures, recessions, & inflation. |
| Inflation | A phase in the business cycle when there is a general rise in the prices of goods & services. |
| Recession | A slowdown in economic activity. |
| Depression | A severe economic recession. |
| GDP = Gross Domestic Product | The total value in dollars of all the final goods & services produced within the nation in a year. |
