Inflation
What is inflation?
The rise of prices with the same value of a given product or service
Who charges interests rates when you use their money
Banks
When the economy is growing at a very fast rate; to stop spending would Congress raise or lower taxes
Raise taxes to stop massive amounts of people from spending too much
This form of money consist of using items that have value on their own, and then giving them money value
Commodity Money
What does GDP stand for
Gross Domestic Product
When unemployment is high; traditionally inflation is
Low due to prices down as a result of no one buying or getting services
When Interests Rates are high; inflation
goes down due to less people using their credit cards, loans, and other on credit purchases.
How many US Federal Reserve districts are there in the US?
12 Banks
The Gold Standard is an example of...
Representative Money
What does GDP measure in full
A nations output or things it makes for a given year, in terms of how much was spend
When Unemployment and Inflation are both high
Stagflation
What is one way to fight a shrinking economy and encourage others to spend and buy
Lower Interests Rates
This US President took us off the Gold Standard in the 1970s
Richard Millhouse Nixon
Money that has value due to government issuing its value
What does Gross mean in GDP?
Before Taxes
What are two reasons as to why prices inflate
1. Cost Push
2. Demand Pull
How does the Federal Reserve use Interests Rates?
FR puts them onto banks when they borrow each others money
The Federal Reserve
What are some examples of Representative money
Checks
Bank Notes
Gold Notes
What are some things GDP does not include?
Black Market
Second hold goods
Non final goods
This form of inflation occurs as a result of business having to spend more money of the costs of their products.
Cost-push inflation
How does one make money from Interests rates
By putting their money in a bank or other sort of investments
What form of economics is the US?
Open Market or Capitalism
When the Money Supply is high in a country is there a chance of high inflation or low?
High
The product being done in terms of making it and sold to the consumer