economics vocab

national income accounting

measure of national economy

Net Domestic Product (NDP)

measuring economy due to deprevation

Transfer Payments

payments given to individuals from the government

Purchasing Power

real goods and services money can buy

Consumer Price Index (CPI)

measure of change in price of the US over time

Real GDP

GDP adjusted for inflation

aggregates

summing up additional parts of the economy

Business Fluctuations

ups and downs in economy

contractions

economy is slowing down

barter

exchanging goods and services for goods and services

commodity

item that has value, but isn't money (diamonds)

flat money

money that has value due to the government

thrift institutions

mutual savings bank that is cheaper then commercial banks

near money

accounts that can be turned into money relatively easy

monetary policy

change the rate of growth of money supply to affect credit

check clearing

transferring money from bank to bank

Open-Market Operations

buying and selling US securities

Public Works Project

facilities with public money

medicare

government supplies health care

public goods

government supply by its citizens

social insurance programs

insurance paid for people with disabilities

social security

payments given to people who are retired

Workers Compensation

payments given to workers who were injured on the job

Supplemental Security Income

food stamps

Medicaid

healthcare payments for low income families

Externalities

economy effects an uninvolved 3rd party

budget deficit

government spends more money then it recieves

Benefits Received Principle

government supported people by paying paying taxes

Ability-To-Pay Principle

higher incomes pay more taxes

Proportional Taxes

taxes take same percentage from all incomes

Progressive Tax

larger percentage of taxes from higher incomes

Regressive Tax

more taxes from lower incomes

John Maynard Keynes

developed fiscal policy theories

Milton Friedman

believed Fed should increase money supply each year

CCC

Civilian Conservation Crew