| 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. |
