CE Vocab 12: Business and Government

Front

Limiting or stopping trade with a nation to encourage behavior change.

Back

sanctions

Front

Repeated series of economic growth and recession

Back

business cycle

Front

Regulation of money supply by the Federal Reserve

Back

monetary policy

Front

Government decisions on spending and tax collection

Back

Fiscal policy

Front

Price levels drop as money gains value, risking reduced spending and recession.

Back

deflation

Front

Money loses value, causing a rise in prices; small amounts encourage spending beneficial for the economy.

Back

inflation

Front

Final dollar value of all goods and services produced in a country in a year (Best indicator of Business Cycle).

Back

Gross Domestic Product (GDP)

Front

Tracks price changes over time (Inflation)

Back

Consumer Price Index (CPI)

Front

Regulates money value (monetary policy) and informs US banks.

Back

Federal Reserve System (FED)

Front

Govt incentive ($) to influence economic activity

Back

subsidies