Unit 2 Vocab

Front

Refers to how a government uses spending and taxation to influence the economy.

Back

Fiscal Policy

Front

The general increase in prices of goods and services over time, which reduces the purchasing power of money.

Back

Inflation

Front

An economic system where the government makes all decisions about production, prices, and wages.

Back

Command Economic System

Front

An economic system where decisions are made by individuals and businesses based on supply and demand, with little government interference.

Back

Market Economic System

Front

An economy based on customs, traditions, and beliefs, often relying on farming, hunting, and barter.

Back

Traditional Economic System

Front

A system that combines elements of market and command economies, where both the government and private sector have roles.

Back

Mixed Economic System

Front

Interest is the cost of borrowing money or the reward for saving money, usually shown as a percentage.

Back

Interest

Front

A plan that shows income and expenses over a certain time period.

Back

Budget