Chapter 18 Flashcards
government regulations that try to keep monopolies from emerging
Antitrust policies
a budget in which expenditures equal revenues
Balanced budget
the peaks and valleys of the economy between boom and bust
Business cycle
a tax levied on the returns that people earn from capital investments, like the profits form the sale of stocks or a home
capital gains tax
the ability of unions to determine wages, hours, and working conditions in conjunction with the employer
collective bargaining
a plan in which people are taxed not on what they earn but on what they spend
consumption tax
shortfalls in the budget due to the government spending more in a year than it takes in
deficits
a sharp reduction in a nation’s GDP for more than a year accompanied by high unemployment
depression
the elimination of regulations in order to improve economic deficiency
deregulation
a period of fast economic growth in GDP, signaling prosperity
economic boom
a period of steep decline in GDP, signaling recession
economic bust
all the different strategies that government officials employ to solve economic problem
economic policy
consumer taxes levied on specific merchandise, such as cigarettes or alchohol
excise taxes
independent commission that controls the money supply through a system of twelve federal banks
federal reserve system
economic policy in which government regulates the economy through its powers to tax and spend
fiscal policy
a tax system in which all people pay the same percentage of their income
flat tax
policies that encourage open borders between trading partners by eliminating protectionist policies
free trade policies
total market value of all goods and services produced by everyone in a particular country during a given year.
gross domestic product
was the general economic decline observed in world markets around the end of the first decade of the 21st century
great recession
passed in 1947; limit the power of labor unions, prohibits fed workers from striking and allows firing of workers who do strike; Reagan fired 12000 striking fed air traffic controllers
taft-hartley act
passed in 1933 by congress; banking reforms: FDIC - insured money deposited in banks; parts repealed in 1999 for subprime mortgage trade - caused 2008 recession
glass-steagall act
increased fed oversight and control over derivatives trading; volcker rule prevents banks from speculating with their won money; didn’t bring dramatic change in ways banks do business
dodd-frank act
american’s tax for reform: promotes a flat tax, conservative
Grover Norquist
allowed for unionization of employees; established national labor relations board to oversee labor laws and investigate complaints; allowed unions to engage in collective bargaining
Wagner Act
