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December 12, 2018 

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SILVER CERTIFICATE: Paper currency issued by the U. S. Treasury from 1878 until the 1960s that could be exchanged for an equal value of silver. An occasional silver certificate will pop up in circulation, but for the most part they have been relegated to the storage vaults of collectors and have been replaced by Federal Reserve notes as the nation's paper money.

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Lesson 9: Macro Basics | Unit 4: Policies Page: 11 of 16

Topic: Government <=PAGE BACK | PAGE NEXT=>

Government tries to bring the economy closer to the macro goals of full employment, stability and growth, and to lessen the scarcity problem.
  • Economic policies are government actions designed to affect the economy to pursue the economic goals.
  • Stabilization policies (or counter-cyclical policies) are designed to limit economic instability and business cycles and avoid high rates of unemployment and inflation.
Key macroeconomic stabilization policies:
  • Fiscal policy is the use of government spending and taxes to stabilize the economy.
  • Monetary policy is the use of the amount of money in circulation to stabilize the economy.

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DIVISION OF LABOR

A basic economic notion that labor resources are used more efficiently if work tasks are divided among different workers. This allows workers to specialize in production as each becomes highly skilled at specific tasks.

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Today, you are likely to spend a great deal of time at a garage sale seeking to buy either one of those "hang in there" kitty cat posters or a velvet painting of Elvis Presley. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
"Defeat is simply a signal to press onward."

-- Helen Keller, lecturer, author

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