Doctor, Doctor Give Me the News
This equation calculates what:
C+I+G+Xn
What is GDP?
A type of money that is not backed by gold and silver, like commodity money is.
What is fiat money?
In this phase of the business cycle we are likely to see unemployment at its lowest level.
What is a peak?
A tax on imported goods that the government collects.
What is a tariff?
This measures those 16+ that wan to work full time and have been looking for a job for the last 4 weeks.
What is unemployment rate
This measures the percent change in the price of 400 commonly used goods.
What is Consumer Price Index (CPI)? (If prices go up then there is inflation)
This is one of the 3 functions of money.
What is medium of exchange, it stores value, or a measure of price?
What is expansion?
This policy uses discount rate, reserve requirement, and buying and selling of bonds to influence the economy.
What is Monetary Policy?
What is Real GDP
This is one of the 3 economic indicators that we most commonly look. (can name any one of the 3)
What is unemployment, inflation, or GDP?
This is one of the characteristics of money.
What is divisible, portable, scarce, durable, or recognizable?
In this phase of the business cycle we are likely to see GDP decreasing.
What is contraction/recession?
Retail sales are an example of this type of indicator because they often change before there is an economic adjustment and thus can be used to predict future trends.
What is a leading indicator?
When an individual (or country) can produce more output using less in inputs than another individual (or country).
What is absolute advantage?
Congress and the president oversee this policy that includes the use of government spending and taxes to influence the economy.
What is Fiscal policy?
The relative price of one currency expressed in terms of another currency
What is exchange rate?
In this phase of the business cycle we are likely to see inflation rising.
What is expansion?
Given that:
the US can make 100 watches or grow 100 Bananas and
Cuba can make 50 watchers or grow 80 bananas.
This country should produce watches.
What is the U.S.?
Sales tax is an example of this type of tax because as a percentage of income, low income individuals pay more than high income earners.
Regressive tax
Means that goods exported by the US are relatively pricier for foreign customers to buy but is great if you are traveling to a foreign country because things will seem relatively cheap.
Strong dollar (also means that imports will seem relatively cheap).