Apex Government 7.2 Policy in Action – Flashcards
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Business Cycle
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Regular changes in economic activity, going up and down in a series of highs and lows.
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Countercyclical Behavior
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Counter mean "against" A cycle is a series of actions that are repeated.
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Deficit
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The amount of money by which a government spends more than its income.
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Economic Policy
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Actions that the government takes to maintain a stable and growing economy.
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Federal Budget
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The spending plan of the federal government. The president creates the budget and presents it to congress.
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Federal Insurance Contributions Act
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A tax paid by workers to fund Social Security.
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Federal Reserve System
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The central banking system of the United States.
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Fiscal Policy
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Government decisions about taxes and spending.
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Foreign Aid
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Economic, military, or medical aid given to one nation by another.
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Foreign Policy
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A nation's goals for relations with other nations and the methods it uses to get it goals.
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Mixed Economy
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A system with both free-market and command principles.
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Monetary Policy
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Government decisions about interest rates and managing the country's supply of money.
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National Debt
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The money owed by the national government.
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National Health Insurance
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A government-operated system of insurance.
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Progressive Tax
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Any tax that goes up as income goes up.
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Regressive Tax
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A tax that goes down as income goes up.
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Regulations
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Government limits on the ways in which businesses can work.
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Regulatory Policy
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The way in which government makes rules for businesses.
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Social Policies
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Government actions that seek to improve the well-being of the people.
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Social Security
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An insurance program run by the federal government for people who have quit working because of age or injury.
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Surplus
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The amount of money that government has beyond the money used or needed.
