Chapter 18 Key Terms: Economic Policy

Front

An estimate of income and expenditure for a set period of time.

Back

Budget

Front

The result of the government in one year spending more money than it takes in from taxes.

Back

Deficit

Front

The total amount of money that a country's government has borrowed.

Back

National Debt

Front

The total value of goods produced and services provided in a country during one year.

Back

Gross Domestic Product (GDP)

Front

One who believes that inflation occurs when too much money is chasing too few goods.

Back

Monetarist

Front

The belief the government must manage the economy by spending more money when in a recession and cutting spending when inflation occurs.

Back

Keynesianism

Front

The process by which key economic decisions are made or influenced by central governments.

Back

Economic Planning

Front

An economic theory that holds that reducing taxes and decreasing regulation will stimulate the economy.

Back

Supply-Side Theory

Front

The process by which a central bank manages the supply and the cost of money in an economy.

Back

Monetary Policy

Front

Managing the economy through the use of tax and spending laws.

Back

Fiscal Policy