Chapter 15 Flashcards
Interest levels established by the Federal Reserve that affect the ability of the consumer to borrow money; raising and lowering rates is used as a tool to combat inflation
Discount rates
Results in the government giving benefits directly to people, groups, farmers, and businesses
Distributive policy
Federal body that regulates the money supply by controlling open-market operations
Federal Reserve System
Policy that determines how the economy is managed as a result of government spending and borrowing and the amount of money collected from taxes
Fiscal policy
Currently the key economic measure that analyzes an upward or downward economic trend of the monetary value of all the goods and services produced within the nation on a quarterly basis
Gross Domestic Product
The total of all goods and services produced in a year
Gross National Product
French term literally meaning “hands off,” used to describe an economic policy without government intervention
Laissez faire
Act that prohibited employers from punishing workers who joined unions and gave labor the right to form unions
Norris-LaGuardia Act (1932)
The government’s price guarantees for certain farm goods; the government subsidizes farmers to not grow certain crops and also buys food directly and stores it, rather than let the oversupply in the market bring the prices down
Price supports
Policy that results in the government taking money from one segment of the society through taxes and giving it back to groups in need
Redistributive policy
Also called the National Labor Relations Act of 1935, it gave workers involved in interstate commerce the right to organize labor unions and engage in collective bargaining
Wagner Act
a primary measure of inflation determined by the increase in the cost of products compared to a base year
Consumer Price Index
