Payments to citizens from the government (national or state) in the form of programs like Social Security, Medicare, unemployment compensation, Medicaid, welfare programs:
What are Transfer Payments
100
The lowest point of the cycle. High unemployment, low sales, low output:
What is a Trough
100
The dollar amount of all the final goods and services produced in a country’s borders
What is GDP
100
All the deficit spending over the years (1776 – today) added up:
What is the National Debt
100
This tracks the percentage of unemployed people that are actively seeking work:
What is Unemployment/Rate
200
Every dollar the government spends (on roads, education, war, etc) is a dollar in the economy. Most effective policy tool:
What is Government Spending
200
6 months or more with a decrease in economic growth:
What is a Recession
200
We add up all the items consumers, businesses, the government and net exports purchased in one year
What is calculating the GDP
200
When the federal government spends more than they collect in taxes
What is Deficit Spending
200
A mismatch between employers needs and workers skills, usually lasts for long period because workers need to develop new skills is this type of unemployment:
What is Structural Unemployment
300
The federal government’s attempt to stabilize the economy through government spending, taxes, and transfer payments:
What is Fiscal Policy
300
Period of general prosperity, low unemployment – high output - inflation
What is Peak
300
Goods used to make final goods
What is Intermediate goods/Capital goods
300
For every dollar the government borrows, there is one less dollar individuals (you) or businesses can borrow = HIGHER INTEREST RATES!
What is the “Crowding –out Effect”
300
This is caused by temporary shifts in the demand for labor
What is Seasonal Unemployment
400
To EXPAND the economy due to a:
What is a recession
400
Slowing down of the economy – declining sales – an increase in unemployment:
What is Contraction
400
Drugs, prostitution, illegal gambling, etc are excluded because the government cannot track or trace sales
What is Illegal activity
400
This is caused by people moving from one job to another usually for a short time period.
What is Frictional Unemployment
500
To CONTRACT or slowdown the economy due to high:
What is Inflation
500
Period of economic recovery, unemployment decreases, business expands, output increases
What is Expansion
500
GDP per capita =
What is GDP divided by # of citizens in a country
500
For every dollar the government spends paying for the INTEREST ONLY on the debt – is less money for programs – roads, schools, military, etc
What is Purchasing Power
500
A mismatch between employers needs and workers skills, usually lasts for long period because workers need to develop new skills is this: