AP Government Chapter 18 Flashcards
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| 9150702599 | Monetarism | The belief that inflation occurs when too much money is chasing too few goods. Milton Friedman |  | 0 |
| 9150702600 | Keynesianism | The belief that the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation. John Maynard Keynes |  | 1 |
| 9150702601 | Economic Planning | The belief that government plans, such as wage and price controls or the direction of investment, can improve the economy. John Kenneth Galbraith | 2 | |
| 9150702602 | Supply-side Theory | The belief that lower taxes and fewer regulations will stimulate the economy. Arthur Laffer Paul Craig Roberts | 3 | |
| 9150702603 | Reaganomics | The belief that a combination of monetarism, lower federal spending, and supply-side economics will stimulate the economy. Ronald Reagan |  | 4 |
| 9150702604 | Monetary Policy | Managing the economy by altering the supply of money and interest rates. | 5 | |
| 9150702605 | Fiscal Policy | Managing the economy by the use of tax and spending laws. | 6 | |
| 9150702606 | Budget | A document that states tax collections, spending levels, and the allocation of spending among purposes. | 7 | |
| 9150702607 | Fiscal Year | For the federal government, October 1st through the following September 30th. | 8 | |
| 9150702608 | Budget Resolution | A congressional decision that states the maximum amount of money the government should spend. | 9 | |
| 9150702609 | Entitlements | A claim for government funds that cannot be changed without violating the rights of the claimant. | 10 | |
| 9150702610 | Sequester | Automatic spending cuts. | 11 | |
| 9150702611 | budget surplus | a situation in which the government takes in more money than it spends | 12 | |
| 9150702612 | Congressional Budget Act 1974 | Legislation that authorizes budget ceilings | 13 | |
| 9150702613 | Council of Economic Advisors | A group that forecasts economic trends | 14 | |
| 9150702614 | Deficit | What occurs when the government in one year spends more money than it takes in from taxes | 15 | |
| 9150702615 | Discretionary Spending | Spending not required to pay for contracts, interest on the national debt or entitlement programs | 16 | |
| 9150702616 | Federal Reserve System | The mechanism that regulates the supply and price of money | 17 | |
| 9150702617 | Globalization | The growing integration of the economies and societies of the world | 18 | |
| 9150702618 | Gross Domestic Product (GDP) | The total of all goods and services produces in the economy during a given year | 19 | |
| 9150702619 | Loopholes | General term for deductions, exemptions and exclusions in the tax code | 20 | |
| 9150702620 | National Debt | The total deficit from the first presidency down to the present | 21 | |
| 9150702621 | Other-regarding voter theory | The theory that voters worry about community and national interests | 22 | |
| 9150702623 | Wage and Price Controls | Government regulation of the maximum prices that can be charged and wages that can be paid | 23 | |
| 9150702624 | Self regarding voter theory | The theory that voters are mostly influenced by their own immediate economic situation | 24 | |
| 9150702625 | Sociotropic voting | Electoral behavior that regards the condition of the national economy more so than one's own personal finances | 25 | |
| 9150702626 | Treasury Department | An organization that provides estimates of tax revenues | 26 |