Civics Core 100, Goal 9 The learner will analyze factors influencing the United States economy.

People and nations all over the world now depend on one another for many goods and services TRADE

The economy grows over time through alternating intervals of growth and decline called the business cycle

European Union (EU): org of independent European nations North American Free Trade Agreement (NAFTA): will eventually eliminate all barriers to trade among US, Canada, and Mexico World Trade Organization (WTO): oversees trade among all nations

Free Trade: reduced barriers on trade –To increase trade, countries join together with a few key trading partners to set up zones of free trade Protectionism: tariffs placed on imports; price of foreign goods goes up and makes local prices more competitive –to protect domestic products –Can lead to trade wars: set up even greater trade barriers

Changes in government spending of tax policies Important economic tool because of its ability to affect the total amount of output produced (Gross Domestic Product)

Controlling of the supply of money and the cost of borrowing money (credit) The Federal Reserve System can increase or decrease the supply of money