Graduation
At what percentage should inflation remain at?
2%
Year of the worst bank panic
1907
Is the poverty threshold the same everywhere in the US?
NO!
The up and down activity of the economy is called:
Inflation especially hurts people on:
Fixed incomes
This occurs when the average price of all goods and services goes up
Inflation
This is the most obvious effect of inflation:
Your money doesn't buy as much
This type of inflation is caused by rising prices of resources (such as oil):
Cost-plus
The Federal Reserve System is a:
Central bank
A worker fired for constantly being late will:
Not receive unemployment benefits
In a free society, there will _____________ be unfilled jobs because people are able to quit their jobs.
Unfilled
The % of people who want to work but cannot find it:
Unemployment rate
The FDIC will insure up to how much money?
$100,000
Cyclical unemployment
To "take the temperature" of the economy, we look at:
Statistics
A situation in which there is rapid, excessive, and out-of-control general price increases in an economy
Hyperinflation
When people borrow money, what happens to the money supply?
It goes up
This is when the contraction period continues for 6 months or more
Recession
What are the two other names for the poverty line?
2. Poverty level
What does a central bank control?
The nation's money supply
What 3 things determine how well-off a person is?
1. Does the person own property?
2. How much taxes does the person pay?
3. Does the person receive government assistance?
Name the 4 duties of the Federal Reserve system:
It works to make sure that people’s deposits are safe.
It works to make sure that there are no bank panics.
It sets rules for how much cash banks must keep on hand to back up their deposits.
The Fed has the important job of making the economy run smoothly.
Why are men more affected by unemployment?
Because construction and manufacturing are hit hardest by economic declines
This is when the economy is growing, employment is high, and GDP is increasing
Expansion
Explain WHEN and WHY people may suddenly withdraw cash from their bank:
When: There is a bank panic
Why: They lose confidence in their banks