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Introducing Concepts - Monetary Policy and Fiscal Policy definitions

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Terms in this set (15)

  • Monetary Policy
    Adjustment of the money supply to influence interest rates and overall spending, typically managed by a central bank.
  • Fiscal Policy
    Government actions involving changes in spending and taxation to impact overall economic activity and spending.
  • Federal Reserve
    Central banking institution in the US responsible for managing the nation's money supply and implementing monetary policy.
  • Keynesian Economics
    Economic theory emphasizing government intervention to address inadequate spending and economic downturns.
  • Invisible Hand
    Concept describing self-regulation of markets through individual actions without central direction.
  • Great Depression
    Severe worldwide economic downturn in the 1930s marked by prolonged unemployment and declining output.
  • Great Recession
    Major global economic decline beginning in 2008, notable for swift recovery due to active government intervention.
  • Government Spending
    Expenditures by public authorities on goods, services, and programs to stimulate economic activity or provide welfare.
  • Tax Policy
    Government decisions regarding taxation levels, affecting disposable income and overall economic spending.
  • Unemployment
    Condition where individuals willing and able to work cannot find employment, often rising during economic slumps.
  • GDP
    Total value of all goods and services produced within a country, serving as a key measure of economic output.
  • Recession
    Period of declining economic activity, typically identified by falling output and rising unemployment.
  • Free Market
    Economic system where prices and production are determined by unrestricted competition among privately owned businesses.
  • Welfare Programs
    Government initiatives providing financial assistance or services to individuals facing economic hardship.
  • Interest Rates
    Cost of borrowing money, influenced by central bank policies and affecting overall spending in the economy.