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| 6941491907 | medium of exchange | usable for buying and selling goods and services. | 0 | |
| 6941493005 | transaction demand | demand for money as a medium of exchange. | 1 | |
| 6941493006 | monetary policy | Deliberate changes in the money supply by the Fed to influence interest rates and thus the total level of spending in the economy. | 2 | |
| 6941494553 | commodity money | commodity that has intrinsic value | 3 | |
| 6941494554 | asset demand | demand for money as a store of value. | 4 | |
| 6941496150 | reserve ratio | amount commercial banks must keep on hand and not lend out. | 5 | |
| 6941496151 | fiat money | anything that is money because the government has decreed it to be money. | 6 | |
| 6941497072 | FOMC | the 12-member group that determines the purchase and sale policies of the Federal Reserve Banks in the market for U.S. government securities. | 7 | |
| 6941497073 | tight money | policy of increasing interest rates to reduce borrowing and spending, which will decrease expansion of aggregate demand and hold down price-level increases. | 8 | |
| 6941498071 | easy money | policy of lowering interest rates by the Fed to increase aggregate demand and expand read GDP. | 9 | |
| 6941498072 | Board of Governors | seven-member group that supervises and controls the money and banking system of the U.S. | 10 | |
| 6941499140 | demand deposits | financial account with funds that can be withdrawn at any time; same as a checking account. | 11 | |
| 6941500220 | intrinsic value | the market value of the metal within a coin. | 12 | |
| 6941500221 | time deposits | an interest-earning deposit in a bank. | 13 | |
| 6941501816 | excess reserves | the amount by which a bank's actual reserves exceed its required reserves. | 14 | |
| 6941501817 | federal funds rate | the interest rate banks charge one another on overnight loans made out of their excess reserves. | 15 | |
| 6941503176 | legal tender | means that paper money is a vaild and legal means of payment of any debt that was contracted in dollars. | 16 | |
| 6941504437 | classical theory | argument that the economy would automatically self-adjust after deviations from the norm occur and return to full-employment levels. | 17 | |
| 6941504438 | Keynesian theory | argument that government should play an active role stabilizing the economy. | 18 | |
| 6941505474 | productivity | a measure of average output per unit of input. | 19 | |
| 6941505475 | efficiency wages | wage that minimizes wage costs per unit of output by encouraging greater effort or reducing turnover. | 20 | |
| 6941506738 | budget surplus | amount by which the revenues of the Federal government exceed its expenditures in any year. | 21 | |
| 6941506739 | budget deficit | amount by which the expenditures of the Federal government exceed its revenues in any year. | 22 | |
| 6941507769 | crowding out effect | rise in interest rates caused by the Federal government's increased borrowing to finance budget deficits. | 23 | |
| 6941507770 | recessionary gap | the amount the aggregate demand must shift upward to increase the GDP to its full-employment level. | 24 | |
| 6941509015 | inflationary gap | the amount the aggregate demand must shift downward to decrease the GDP to its full-employment level. | 25 | |
| 6941510341 | contractionary fiscal policy | a decrease in government spending, an increase in net taxes, or some combination of the two, for the purpose of decreasing aggregate demand and thus controlling inflation. | 26 | |
| 6941511672 | expansionary fiscal policy | in increase in government spending, a decrease in net taxes, or some combination of the two, for the purpose of increasing aggregate demand and thus expanding real output. | 27 | |
| 6941511673 | normal good | products whose demand varies directly with money income. | 28 | |
| 6941512598 | inferior good | products whose demand varies inversely with money income. | 29 | |
| 6941513572 | substitution effect | at a lower price, buyers have the incentive to substitute what is now a less expensive product for other products that are now relatively more expensive. | 30 | |
| 6941514968 | law of diminishing marginal utility | in any specific time period, a buyer of a product will derive less satisfaction from each successive unit of the product consumed. | 31 | |
| 6941516012 | substitute good | good that can be used in place of another good. | 32 | |
| 6941516013 | complementary good | good that is used together with another good. | 33 | |
| 6941517339 | income effect | a lower price increases the purchasing power of a buyer's income. | 34 | |
| 6941517340 | absolute advantage | can produce more output of that product from any given amount of resource inputs than can any other producer. | 35 | |
| 6941518695 | comparative advantage | can produce the product at a lower opportunity cost than another producer. | 36 | |
| 6941518696 | specialization | using the resources of an individual, firm, region, or nation to produce one or a few goods or services rather than the entire range of goods and services. | 37 | |
| 6941520178 | product market | place where goods and services produced by businesses are bought and sold. | 38 | |
| 6941520179 | resource market | place in which households sell their resources to businesses. | 39 | |
| 6941521497 | land | natural resources used in the production process. | 40 | |
| 6941521498 | labor | physical actions and mental activities that people contribute to the production of goods and services. | 41 | |
| 6941521499 | capital | all manufactured aids used in producing consumer goods and services. | 42 | |
| 6941522547 | entrepreneurial ability | the human resource that takes the initiative in combining the resources of land, labor, and capital to produce a good or service. | 43 | |
| 6941522548 | economics | social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. | 44 | |
| 6941524855 | surplus | excess supply | 45 | |
| 6941524856 | shortage | excess demand | 46 | |
| 6941525735 | market system | economic system characterized by the private ownership of resources. | 47 | |
| 6941525736 | command system | economic system characterized by government ownership of resources. | 48 | |
| 6941526713 | equilibrium | neither a shortage or a surpus | 49 |
