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| A policy designed to ensure competition and prevent monopoly, which is the control of a market by one company. |
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| An economic system in which individuals and corporations, not the government, own the principal means of productions and seek profits. Pure capitalism means the strict noninterference of the government in business affairs. |
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| Negotiations between representatives of labor unions and management to determine acceptable working conditions. |
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| Consumer Price Index (CPI) |
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| The key measure of inflation that relates the rise in prices over time. |
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| The main instrument for making monetary policy in the US. It was created by Congress in 1913 to regulate the lending practices of banks and thus the money supply. The seven members of its Board of Governors are appointed to a 14-year terms by the president with the consent of the Senate. |
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| The policy that describes the impact of the federal budget - taxes, spending, and borrowing - on the economy. Unlike monetary policy, which is mostly controlled by the Federal Reserve System, fiscal policy is almost entirely determined by Congress and the president, who are the budget makers. |
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| Food and Drug Administration (FDA) |
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| The federal agency formed in 1913 and assigned the task of approving all food products and drugs solid in the United States. All drugs, with the exception of tobacco, must have FDA authorization. |
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| The rise in prices for consumer goods. Inflation hurts some but actually benefits others. Groups such as those who live on fixed incomes are particularly hard hit, which people whose salary increases are tied to the consumer price index but whose loan rates are fixed may enjoy increased buying power. |
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| Keynesian Economic Theory |
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| The theory emphasizing that government spending and deficits can help the economy weather its normal ups and downs. Proponents of this theory advocate using the power of government to stimulate the economy when it is lagging. |
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| An organization of workers intended to engage in collective bargaining. |
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| The principle that government should not meddle in the economy. |
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| The legal minimum hourly wage for large employers, currently $5.15 per hour. |
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| An economic system in which the government is deeply involved in economic decisions through its role as regulator, consumer, subsidizer, taxer, employer, and borrower. The united States can be considered a mixed economy. |
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| An economic theory holding that the supply of money is the key to a nation's economic health. Monetarists believe that too much cash and credit in circulation produces inflation. |
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| Based on monetarism, monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy. |
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| Multinational Corporations |
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| Large businesses with vast holdings in many countries. Many of these companies are larger than most governments. |
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| National Labor Relations Act |
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| A 1935 law, also known as the Wagner Act, that guarantees workers the right of collective bargaining, sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor management relations. |
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| Economic policy of shielding an economy from imports. |
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| Securities and Exchange Commission |
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| The federal agency created during the New Deal that regulates stock fraud. |
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| An economic theory, advocates by President Regan, holding that too much income goes to taxes and too little money is available for purchasing and that the solution is to cut taxes and return purchasing power to consumers. |
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| As measured by the Bureau of Labor Statistics, the proportion of the labor force actively seeking work but unable to find jobs. |
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| International organization that regulates international trade. |
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