Unit 2: Macroeconomics & the Government
At this point in the business cycle, consumers are increasing spending and producers are increasing production.
Expansion
The money earned through working a job or providing a service
Earned Income
A plan for managing income and expenses
Budget
The act of using money with the hope it grows in value over time
Investment
How companies convince you to buy their goods and services; these can be found in magazines, tv, social media, etc
Advertisements
The general increase in prices over time, decreasing purchasing power
Income BEFORE taxes and deductions
Gross Income
A not for profit financial institution
Credit Union
Ownership in a company
Stocks
Phishing
This involved government spending, borrowing, and taxes
Fiscal Policy
Your take home pay AFTER deductions
A fee charged for borrowing money
Interest
A tax deferred retirement account that you create and control
Roth IRA
When you access an unsecured hotspot or wifi network and someone steals your information
Hacking
In this type of unemployment, a worker loses their job because their skills or knowledge are no longer needed by the business.
Structural unemployment
A financial award that is given to student for college that does not have to be repaid
Scholarship
A long term loan for purchasing real estate
Mortgage
The amount you pay out of pocket before insurance kick in
Deductible
1st step when someone steals your information or credit card
Cancel your card
The government agency that controls the money supply
The Federal Reserve
Money you can spend on wants after paying all expenses.
Discretionary income
A short term loan with high interest rates; banned in most states
Payday loans
Giving time or money to help others or good causes
Philanthropy
Three main strategies that advertisements use to influence you
Logos, pathos, ethos