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Economic Policy

Match the vocabulary words to their right definition.

fiscal policy A theory that opposes governmental interference in economic affairs beyond what is necessary to protect life and property.
Government policy that attempts to manage the economy by controlling the money supply and thus interest rates. A tax graduated so that people with lower incomes pay a higher fraction of their income than people with higher incomes.
A rise in the general price level. An international trade organization with more than 130 members that seeks to encourage free trade by lowering tariffs and other trade restrictions.
unemployment excise tax
stagflation congressional budget office (CBO)
gross domestic product (GDP) Government policy that attempts to manage the economy by controlling taxing and spending.
A consumer tax on a specific kind of merchandise, such as tobacco. A combination of an economic slowdown and a rise in prices.
The condition that exists when the federal government raises less revenue than it spends. spending that can be altered by congressional and presidential action.
A tax levied on imports to help protect a nation's industries, labor, or farmers from foreign competition. The system created by Congress in 1913 to establish banking practices and regulate currency in circulation and the amount of credit available.
A tax graduated so that people with higher incomes pay a larger fraction of their income that people with lower incomes. A company with labor agreement under which union membership is a condition of employment.
regressive tax inflation
The total amount of money the federal government has borrowed to finance deficit spending throughout the years. A court order forbidding specific individuals or groups from performing certain acts (such as striking) that the court considers harmful to the rights and property of employer or a community.
Required spending under the federal budget. The amount of interest banks charge for loans to each other.
discretionary spending  deregulation
The presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies. national debt
An agency of Congress that analyzes presidential budget recommendations and estimates the costs of proposed legislation. monopoly
A loss of tax revenue due to federal laws that provide special tax incentives or benefits to individuals or businesses. trade deficit
sales tax antitrust legislation
A tax on increased value of a product at each stage of production and distribution rather than just at the point of sale. The number of Americans who are out of work but actively looking for a job.
Federal Reserve System progressive tax
federal funds rate A monopoly that controls goods and services, often in combinations that reduce competition.
laissez-faire economics A method whereby representatives of the union and employer determine wages, hours, and other conditions of employment through direct negotiation.
Keynesian economics An agreement by the United States, Canada, and Mexico in 1992 to form the largest free trade zone in the world.
A policy of erecting trade barriers to protect domestic industry. monetary policy
An imbalance in international trade in which the value of imports exceeds the value of exports. value-added tax (VAT)
world trade organizations (WTO) A general tax on sales transactions, sometimes exempting such items as food and drugs.
general agreement on tariffs and trade (GATT) corporate social responsibility
north american free trade agreement (NAFTA) tax expenditure
Domination of an industry by a single company; also the company that dominates the industry. office of management and budget (OMB)
federal laws (starting with the Sherman Antitrust Act of 1890) that try to prevent a monopoly form dominating an industry and restraining trade. an economic theory based on the principles of John Maynard Keynes stating that government spending should increase during business slumps and be curbed during booms.
trust tariff
closed shop The value of all goods and services produced by an economy during a specific period of time such as a year.
union shop An international organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes free trade around the world.
labor junction protectionism
collective bargaining environmental impact statement
A statement required by federal law from all agencies for any project using federal funds to assess the potential effect if the new construction or development on the environment. mandatory spending
Efforts by corporations to improve their reputations by paying attention to their contributions to the social good. budget deficit
A policy promoting cutbacks in the amount of federal regulation in specific areas of economic activity. A company in which new employees must join a union within a stated time period.

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