Business Cycle
The two things the business cycle is measuring
What are GDP and Time?
The unemployment status of the students in this classroom
What is "not unemployed"?
What are Consumption and Government Spending?
Monetary Policy affects this (not looking for GDP)
What is the money supply?
This is what GDP stands for
Gross Domestic Product
There line on the business cycle graph that shows what the economy should be doing
What is the trend line?
The type of unemployment Mr. Gibson was technically in immediately after completing college
What is Frictional Unemployment?
The broad term for fiscal policy that gets the economy out of recessions
What is expansionary fiscal policy?
This part of the government uses monetary policy
What are the central banks or the FED?
The equation to find GDP
What is C+I+G+(X-M)?
The name of the part of the business cycle graph when it bottoms out
What is a trough?
The type of unemployment directly linked to changes in the business cycle
What is cyclical unemployment?
Two examples of contractionary government spending
What are raising taxes and reducing government spending?
This would likely happen to the GDP if the discount rate was lowered by the FED
What is raise?
The part of the GDP equation that is affected when you buy a house
What is an investment?
High unemployment comes as a direct response to this lowering on the business cycle graph
What is the GDP?
The type of unemployment a VCR repairman would likely face
What is structural unemployment?
The type of fiscal policy being used when the GDP is purposefully tanked
What is contractionary fiscal policy?
The measurement of how easily one can spend their money
What is liquidity?
This occurs at the peak of a spike in GDP
What is inflation?
The names of the two types of government policy we can use to manipulate the business cycle
What are fiscal and monetary policy?
The combination of frictional and structural unemployment
What is the natural rate of unemployment?
The fiscal policy you would want to use when the economy riding along the trend line
What is nothing?
This would likely happen to GDP if the mandatory reserve rate rose
What is drop or lower?
How the GDP is affected when the United States makes a large trade deal to start taking in more exports from another nation