GDP
This term represents the total market value of all final goods and services produced within a country’s borders in a given year.
What is Gross Domestic Product (GDP)?
The unemployment rate is calculated by dividing the number of unemployed people by this larger group
What is the labor force?
Inflation is defined as a general __________ in the price level of goods and services
What is an increase?
This curve represents the total demand for all goods and services in an economy.
What is aggregate demand?
This function of money lets us compare the prices of goods and services.
What is a unit of account?
These goods are not counted in GDP because doing so would cause double counting.
What are intermediate goods?
This major limitation of the unemployment rate excludes people who work part-time but want full-time work.
What is underemployment?
This index is the most common tool for measuring inflation in consumer goods.
What is the Consumer Price Index (CPI)?
This event shifts the AD curve to the right: increased optimism among households and consumers.
What is an increase in consumer confidence?
This characteristic of money must hold value over time to allow saving.
What is store of value?
This GDP component is calculated as exports minus imports
What are net exports?
This type of unemployment increases during recessions when overall demand in the economy falls.
What is cyclical unemployment?
A very high and accelerating rate of inflation is known by this term.
What is hyperinflation?
A rise in production costs (such as energy prices) causes this shift in the aggregate supply curve.
What is a leftward shift?
Gold and silver are examples of this type of money with intrinsic value.
What is commodity money?
Buying a used car does not increase GDP because it is part of this category of non-counted items.
What are used goods?
A widow living on fixed-rate bond income is in this position during periods of inflation.
What is “hurt by inflation”?
This group, which keeps money in low-interest savings accounts, tends to suffer during inflation
Who are savers?
An increase in household debt causes this change to the aggregate demand curve.
What is a shift to the right?
Money that has value only because the government declares it legal tender is known as this.
What is fiat money?
Spending on new machinery and equipment by businesses is counted in this GDP category.
What is investment?
A farmer paying off a fixed-rate loan over 10 years experiences this effect when inflation rises.
What is “gains from inflation”?
This common policy tool raises taxes or decreases the money supply to reduce inflation.
What are contractionary policies?
This monetary policy action by the central bank stimulates aggregate demand during a recession.
What is lowering interest rates?
By buying or selling government bonds, central banks manage the money supply through these operations.
What are open market operations?