AP Government Chapter 12 Flashcards


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1

Political Ideology

A set of Beliefs about the desired goals and outcomes of a process of governance.

2

Conservatism

An ideology favoring more control of social behavior, fewer regulations on businesses, and less government interference in the economy.

3

Liberalism

An ideology favoring less government control over social behavior and more greater regulation of business and of the economy.

4

Libertarianism

An ideology favoring very little government regulation and intervention beyond protecting private property and individual liberty.

5

Laissez-Faire Economy

Economic policy in which governments intrude as little as possible in the economic transaction between citizens and businesses.

6

Command-and-Control Economy

Economic policy in which government dictates much of a nation's economic activity, including the amount of production and price for goods.

7

Mixed Economy

Economic policy in which many economic decisions are left to individuals and businesses, with the government regulating economic activity.

8

GDP

The total value of goods and services produced by an economy.

9

Economic Recession

A period of decline in economic activity, typically defined by two consecutive quarters of negative GDP growth.

10

CPI

The cost of a fixed basket of goods and services over time, used to measure the cost of living.

11

Business Cycle

The natural economic activity of ups and downs.

12

Keynesianism

An economic theory that government intervention can stabilize an economy by managing aggregate demand.

13

Supply-side Theory

An economic approach that believes growth is best achieved by reducing barriers for producers, which increases the supply of goods and services.

14

Fiscal Policy

Government use of taxes and spending to attempt to lower unemployment, support economic growth and stabilize the economy.

15

Federal Reserve System

A board of governors, federal reserve banks, and member banks responsible for monetary policy.

16

Monetary Policy

A set of economic policy tools designed to regulate the amount of money in the economy.

17

Medicare

A federal program that provides health insurance to seniors and the disabled.

18

Medicaid

A federal program that provides health care for the poor.

19

Affordable Care Act

A US law from 2010 that expands health insurance coverage, making it more affordable and accessible for millions of people.

20

Voucher Programs

A government that provides a certain amount of public money to eligible individuals, typically in the form of a coupon or credit.