Vocabulary
Price Stability
Stocks
Unemployment
Monetary and Fiscal Policy
100
The loss of potential gain from other alternatives when one alternative is chosen.
What is Opportunity Cost
100
A sustained increase in the general level of prices for goods and services.
What is Inflation?
100
A way to trade a stock with unlimited potential losses
What is short-selling
100
Unemployment that affects lifeguards and snow plow drivers
What is seasonal unemployment
100
There is a shortage of jobs in a town. What policy should you use to create more jobs?
What is fiscal policy?
200
The basic economic problem that arises because people have unlimited wants but resources are limited.
What is Scarcity
200
A decrease in the general price level of goods and services.
What is Deflation?
200
Buying stocks with borrowed money
What is buying on margin or margin debt
200
Unemployment that is caused by workers transitioning between jobs
What is frictional unemployment
200
Inflation is taking over a city. What policy should you use to lower inflation?
What is monetary policy?
300
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
What is a Stock
300
Instances when the inflation rate has reduced marginally over the short term.
What is Disinflation?
300
The exchange Amazon (AMZN) is traded on
What is the NASDAQ
300
Unemployment due to economic slump
What is cyclical unemployment
300
How can monetary policy lower inflation?
What is by increasing interest rates; therefore, people will buy less?
400
The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.
What is Monetary Policy
400
A situation where the price increases are so out of control that the concept of inflation is meaningless.
What is Hyperinflation?
400
The 30 stocks that make up the Dow Jones Industrial Average
What are "blue chip" stocks
400
When a shortage of labor leads to higher wages and inflation
What is NAIRU
400
How can fiscal policy lower unemployment?
What is by increasing government spending?
500
A condition of slow economic growth and relatively high unemployment.
What is stagflation
500
A fiscal or monetary policy, designed to expand a country's output and curb the effects of deflation.
What is Reflation?
500
What the company CreXus offered to potential buyers of stock
What are dividends or income
500
Lack of this has caused a fall in the unemployment rate
What is labor force participation rate
500
Unemployment is high and consumer spending is low. What policy do you think could fix this problem and why?
What is Fiscal policy because by decreasing taxes allows consumers to spend more on goods and services which can lead to low unemployment?
M
e
n
u