Business Cycle
These are the four phases of the business cycle.
What are expansion phase, peak phase, recession phase, and trough phase?
When was the Federal Reserve System created by Congress?
When is 1913?
GDP is the three letter acronym for this economic term.
What is gross domestic product?
This form of business provides the owner with the most freedom.
What is sole proprietorship?
These are the four types of unemployment.
What are frictional, structural, seasonal, and cyclical?
During the peak phase of the business cycle economic growth slows due to these three factors being limited.
What are raw materials, labor, and financial capital?
One of the first responsibilities that Congress delegated to the Fed was to provide this type of currency.
What is elastic currency?
These four things are added together to find a nation's GDP.
What are the sale of final goods and services, business investments, governmental spending, and net exports?
This form of business ownership typically have the shortest life span.
What are partnerships?
Economists see this type of unemployment as a positive for both businesses and employees.
What is frictional?
If the trough phase lasts long enough, economists will label it this.
What is a depression?
This term refers to the expansion of the money supply as a result of commercial banks' lending their depositors' money to others.
What is the money multiplier effect?
This type of GDP factors inflation out of the GDP to determine an economy's true production.
What is real GDP?
Only corporations can use this method to raise the capital needed to expand their business.
What is sell shares of stock?
The federal government intervenes in the economy to help keep the unemployment rates below this percentage.
What is 5%
Due to the demand increasing for laborers during the expansion phases, it causes businesses to be competitive by doing this.
What raise wages and job benefits?
In these two ways the Fed acts as the federal government's fiscal agent.
What are holding the treasury's bank account and making loans to the U.S. Treasury by having the FOMC purchase government bonds?
This is the true measure of a nation's wealth.
What is per capita real GDP?
This form of business limited the owners from being held personally liable.
What is a limited liability company (LLC)?
This type of worker has the hardest time finding a job when the government raises the minimum wage.
What are new and unskilled workers?
During the recession phase of the business cycle, these types of purchases are the first to decline.
What are "big-ticket" consumer durable goods (new homes, automobiles, and major appliances)?
This term is used to describe when several depositors panic and withdrawal their money from the bank.
What is a run on the bank?
This category of GDP makes up the largest percentage of it.
What is household expenditures of consumer goods and services?
Because of the benefit this type of business is to society it is not required to pay income tax.
What is a 501(c)?
The development of this has been shown to be the most effective tool in reducing frictional unemployment.
What is internet job-search sites?