Key Terms

aggregate income (appendix), p. 20

aggregate output, p. 9

aggregate price level, p. 10

budget deficit, p. 12

budget surplus, p. 12

business cycles, p. 9

central bank, p. 12

Federal Reserve System (the Fed), p. 12 financial intermediaries, p. 7 financial markets, p. 3 fiscal policy, p. 12 foreign exchange market, p. 5 foreign exchange rate, p. 5 gross domestic product (appendix), p. 12, 20

inflation, p. 10 inflation rate, p. 11 interest rate, p. 4 monetary policy, p. 12 monetary theory, p. 10 money (money supply), p. 8 recession, p. 9 security, p. 3 stock, p. 5

unemployment rate, p. 9

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