Farmer Joe is unemployed during the summer because he cannot grow his crops.
What is seasonal unemployment?
The point on a business cycle graph where economic decline stops is...
What is a trough?
Social and economic goal aimed at increasing the production of goods and services over time
What is Economic Growth?
The organization in charge of monetary policy or regulating the money supply.
What is the Federal Reserve?
Two tools of fiscal policy
Taxation and spending
Largest part of GDP which includes places like retail stores.
Consumer Spending
Aggregate Demand is decreasing.
Physical capital, natural resources, human resources, and entrepreneurship are also known as . . .
factors of production
You can choose between going to Disney World or Universal Studios. You choose Universal Studios. In this case, Disney World is the.....
Opportunity cost
When the economy enters a recession and you are laid off.
What is cyclical unemployment?
The point on a business cycle graph where economic growth stops is...
What is a peak?
Social and economic goal aimed at limiting inflation to keep prices steady
What is price stability?
Monetary policy tool that forbids banks from loaning out a percentage of their money.
What is Reserve Requirement?
When the Federal government spends more money than it has, this causes a....
What is a budget deficit?
GDP adjusted for inflation
real GDP
Aggregate Supply is decreasing.
When you add consumer, government, and investment spending with net exports you get....
GDP
This happens when the federal government spends more than it takes in revenue (taxes).
Deficit Spending
Your company is bought out by a large corporation and you are let go.
What is structural unemployment?
The point on a business cycle graph where real GDP and employment increase is...
What is a recovery/expansion?
Social and Economic Goal aimed at keeping the unemployment rate as low as possible.
Full Employment
Monetary policy tool where banks are paid for not lending money.
What are interest payments on reserves.
When the government receives more in taxes than it spends, this causes a...
What is a budget surplus?
Part of GDP that involves Federal, State, and local branches spending money
Government spending
Aggregate Supply is increasing.
The point on a graph where aggregate supply and demand meet is...
Equilibrium
When unlimited wants exceed limited productive resources.
Scarcity.
You've decided to leave your current job in Sacramento to attend college in New York City, and do not have a job lined up.
What is frictional unemployment?
The point on a business cycle where real GDP decreases and unemployment increases would be....
What is a contraction?
The total consumption of goods and services within an entire country which is also represented on a graph is...
What is Aggregate Demand?
Monetary policy tool where the Fed charges interest for banks borrowing from it.
Discount Rate
People who lose from unanticipated inflation?
Who are lenders?
Part of GDP where businesses spend on productive resources
Investment spending
Aggregate Demand is increasing.
An organization that is made of three branches: the Federal Open Market Committee, Board of Governors, and the District Banks
Federal Reserve
Households, Firms, Government and the exchanges among them are seen in what graphic?
Circular Flow of Economic Activity Diagram
What is cyclical unemployment?
What do you call a downturn or bad time in the economy?
What is a recession or depression?
The total production of goods and services within a country also represented on a graph is...
Aggregate Supply
Monetary Policy tool where bonds are bought from or sold to the public.
Open Market Operations
People who gain from unanticipated inflation?
Borrowers
Part of GDP that involves international trade
net exports
Aggregate Demand and Supply are increasing.
The policies used by the Federal Reserve and the government are...
Monetary and fiscal policies
Surpluses and shortages are caused by these two methods of price control....
Price floor and ceiling.
When moving from C to A, what is your tradeoff?
Sacrifice 5,000 trucks, gain 5,000 boats