Definitions
the branch of economics that examines the overall performance, structure, behavior, and decision-making of an economy/nation as a whole
Macroeconomics
Difference between a tax surplus and tax deficit
A deficit will cause debt, a surplus will remove debt
John works as a ski lift operator but it is May
Seasonal
C + I + G + NX gives us
GDP
GDP that does not adjust inflation
Nominal
Difference between fiscal policy and monetary policy
Interest is monetary and taxes are fiscal
Leonard wants to get a job working at a different factory because it has better pay.
Frictional
An active military member is ___________ the labor force
Not part of
when the inflation rate decreases
Deflation
Explain the difference between structural unemployment and frictional unemployment
Structural deals with location and skills, whereas frictional deals mostly with voluntary unemployment.
Covid 19 causes Greg to lose his job
Cyclical
Lowest point of the business cycle
Trough
economic state in which virtually all who are willing and able to work have the opportunity to do so
Full Employment
the difference between the federal reserve and a normal bank
Federal reserve sets rules and regulations for all normal banks
A company changes its factory locations to Mexico so Jimmy lost his job.
Structural
There are 12 of these in the US
Federal Reserve Regions
results from a mismatch of the labor supply and the labor market. Workers don’t have the right skills or are located in the wrong place.
Structural Unemployment
Difference between consumer price index and the business cycle.
CPI shows inflation fluctuations using a market basket of goods. The business cycles shows the fluctuations of businesses in a nation as a whole.
Stewart lost his job because they cannot afford to pay him anymore since the war started.
Cyclical
What is Mr. Ford's favorite food?
Mexican food