Miscellaneous
The study of the economy as a whole, and how different economies interact with each other
What is macroeconomics?
This is what GDP stands for
What is Gross Domestic Product?
Bonus: What does GNP stand for?
Money that has no intrinsic value but is designated as official currency by a government
What is fiat money?
a contraction lasting longer than 6 months
What is a recession?
increase in the flow of goods, services, capital and ideas across international boundaries
What is globalization?
The total value of final goods and services produced in a country in a given period
What is GDP?
Currency with value that is backed up by a commodity that is held at a bank
What is commodity-backed money?
a period of declining GDP
What is a contraction?
the set of actions the central bank can take to regulate the banking system, and influence the value of the American dollar
What is monetary policy?
The formula for calculating GDP
What is C + I + G + NX?
Bonus: What does each variable stand for?
Money that has value beyond just being used as money
Commodity money
a period of rising GDP that exceeds the previous peak
What is expansion/growth?
the set of actions the government can take to regulate the economy, and influence the value of the American dollar
What is Fiscal Policy?
This is the name of GDP divided by the population
What is GDP per capita?
Means of payment, unit of account, store of value, & standard of deferred payment
What are the 4 functions of money?
These are the high and low points of a business cycle
What are peaks and troughs?
What economists call "too much spending chasing too little product"
What is inflation?
Explain the difference between real GDP and nominal GDP
What is real GDP is adjusted for inflation & nominal GDP is not adjusted for inflation/is the basic GDP number
Explain how the Fed can speed up (expand) and slow down (tighten) the economy
1) Add money to the economy via lower interest rates (attractive for consumer spending)
2) Remove money from the economy via higher interest rates (unattractive to consumer spending)
a period of rising GDP following a contraction, that lasts until the previous peak
What is recovery?