Indicators and Business Cycle
The value of all final goods and services produced within a country's borders during a specific period.
Gross Domestic Product (GDP)
This group implements fiscal policy
Congress
The name of the group that implements monetary policy
The Federal Reserve/The Fed
Taxes
Rules established by the government that businesses and individuals must follow (specific term we used in class, not "laws")
Regulations
This phase of the business cycle is where GDP is at it's highest, inflation is high, and unemployment is low.
Peak
This type of policy is implemented when Congress cuts taxes and increases government spending to fight a recession
Expansionary policy
During a recession, the Fed wants people to ________ borrowing and spending
Increase
This type of tax burdens everyone the same, regardless of income (example: 10% for everyone)
Flat/proportional
Gives an inventor legal protection for an invention for a limited period, generally allowing the inventor to exclude others from selling it without permission.
Patent
This phase of the business cycle has economic activity reach its lowest point before recovery begins
Trough
This type of policy is implemented when Congress raises taxes and decreases government spending to fight inflation
Contractionary
This should happen to interest/discount rates when experiencing an overheating economy
Interest rates should increase
This type of tax takes a larger percentage of income from higher-income earners
Progressive
This protects music, art, movies, etc. as intellectual property
Copyright
GDP per capita
The economy is experiencing high inflation and excessive demand. What SPECIFIC example of fiscal policy could Congress use to slow the economy? (Need just one)
Increase taxes or decrease spending
This is another name for "expansionary policy", specifically used for monetary policy
Loose money policy/loosening of money
If the government were to increase taxes AND decrease spending, the federal budget would move closer to a _________, meaning spending is lower than income
Surplus
This protects logos and slogans as intellectual property
Trademark
This is used to measure inflation using a market basket of goods (full name!)
Consumer Price Index
The economy is experiencing high unemployment and lowered demand. What SPECIFIC examples of fiscal policy could Congress use to heat up the economy? (Need BOTH)
Decrease taxes and increase spending
Selling government bonds
A government collects $4 trillion in revenue but spends $5 trillion in one year. Identity whether this creates a deficit or surplus, and calculate the amount of deficit or surplus (need both!)
Deficit, 1 trillion
Government regulation can be used to break up one businesses controlling most of an industry (which is called....) UNIT 2 REVIEW
Monopoly