GDP
Unemployment
Business Cycle
Federal Reserve
Monetary Policy
100
What happens to the value of a dollar during high inflation?
The value of a dollar decreases
100
Define the term unemployment
One that is seeking work but cannot find a job
100
What does the business cycle show?
The upturns and downturns of the economy over time.
100
What is the role of the Federal Reserve?
It is the central bank of the U.S and they control the money supply through monetary policy.
100
What is monetary policy?
Policies that change the supply of money
200
What is the formula to calculate GDP?
C+I+G+Xn
200
What are the three types of unemployment?
Frictional, structural, and cyclical
200
What is the highest point of the curve on the business cycle? (1)
Peak
200
True or False:
The Federal Reserve prints and shreds millions of dollars every day.
True
200
What does monetary policy promote?
-Price stability (CPI)
-Full employment (unemployment rate)
-Rates of economic growth (GDP)
300
What is CPI (Consumer Price Index) used for?
To measure inflation over time
300
Leo got laid off from his job at Walmart due to self-checkout machines replacing cashiers.
What kind of unemployment is this?
Structural unemployment
300
What is the downfall called on the business cycle? (2)
Recession (contraction)
300
How many members are on "The Board of Governors"?
7 members serving 14 year terms
300
What is a surplus and deficit?
Surplus: having more money left over
Deficit: spending more money than you make
400
A 2024 Honda Accord was made in Japan and sold in the United States.
Is this apart of the United States GDP? Why or why not?
It is NOT apart of the United States GDP because it was made in Japan.
400
Tony lost his job at Whataburger due to the economic recession as people are spending less.
What kind of unemployment is this?
Cyclical unemployment
400
What is the lowest point on the curve in the business cycle? (3)
Trough
400
How many districts are in the Federal Reserve?
12 Districts
400
What is contractional policy?
-Taking money out the economy
-Slowing down the economy
500
Jeremy sold his used textbook to his classmate.
Is this apart of the GDP? Why or why not?
No because it is used.
500
Marvin decided to leave his job at Quiktrip. He is applying to other gas stations such as RaceTrac.
What type of unemployment is this?
Frictional unemployment
500
What is the increase on the curve in the business cycle? (4)
Expansion (recovery)
500
What are the three primary functions of the Federal Reserve?
-Regulate the private banking industry
-Act as a banker's bank
-Control the supply of money
500
What is expansionary policy?
-More money in the economy
-Grow the economy and change a recession