High Unemployment, Low Inflation, Low GDP?
Trough
United States informs China they can only bring 100,000 tractors into the US as an Import. What type of trade barrier is this?
Quota
Aaron was laid off from his job at a chick fil a when the company bought a machine to replace her. What type of unemployment is this?
Structural
What is the best Index to measure inflation?
Consumer Price Index (CPI)
What is the nickname of the Central Bank of the United States?
The Fed
Unemployment rate is increasing, spending is decreasing and GDP is decreasing
Contraction or Recession
Group of countries that work together to make trade easier between each other, but impose barriers on other countries.
Trading Bloc
Unemployment that occurs when something bad happens such as a recession or economic downturn.
Cyclical
Comparing GDP from year to year is the best way to measure Economic ______________
a. price
b. growth
c. opportunities
d. Equity
Growth.
Policy that the Fed uses to fix the economy.
Monetary Policy
Peak
Tariff
Frictional
If you have a CPI of 111, 121, and 131. What has happened from month to month?
Prices have increased.
Policy the Federal government uses to fix the economy
If we are in a Trough, what type of policy is the best way to get out of it?
A. Contractionary
B. Expansionary
B. Expansionary
Embargo
Term associated with 4%-6% unemployment rate?
Full Employment
In order to determine the inflation rate, an economist must add the 8 _______ ________ to determine the CPI?
Market Basket
Assume the economy is having high unemployment and low inflation. Which fiscal policy would be the best to use to fix the problem?
a. Decrease taxes
b. Increase the discount rate
c. Increase taxes
d. Decrease government spending
a. Decrease taxes
The government decides to Increase Taxes and Decrease government spending. What type of policy is this?
Contractionary Policy
If a country places a trade barrier on a country, what two things does it do for those specific goods?
Less foreign products
More expensive foreign products
0%
When there is too much money in the Economy, such as stimulus checks, decrease in taxes....what is that inflation theory called?
a. Quantity Theory
b. Push Cost Theory
c. Pull Demand Theory
Quantity Theory
a. Contractionary Policy
b. Expansionary Policy
Contractionary Policy