Measuring Economic Performance
This measures the total value of final goods and services produced in a country.
What is GDP?
The recurring pattern of economic growth and decline.
What is the business cycle?
Government spending and taxation used to influence the economy.
What is fiscal policy?
Actions taken by a central bank to control money supply and interest rates.
What is monetary policy?
This type of fiscal policy is used to stimulate the economy during a recession.
What is expansionary fiscal policy?
GDP adjusted for inflation.
What is real GDP?
A period of economic growth.
A period of economic growth.
When government spending exceeds revenue.
What is a budget deficit?
The institution responsible for managing a nation’s money supply.
What is a central bank?
This type of fiscal policy is used to slow inflation and reduce economic growth.
What is contractionary fiscal policy?
The percentage of the labor force without jobs but actively seeking work.
What is the unemployment rate?
The highest point of economic activity before decline.
What is a peak?
When government revenue exceeds spending.
What is a budget surplus?
The cost of borrowing money.
The cost of borrowing money.
Lowering interest rates and increasing the money supply are examples of this policy.
What is expansionary monetary policy?
This type of unemployment happens when technology or economic changes make skills outdated.
What is structural unemployment?
A period of declining economic activity.
What is a recession?
The total amount of money the government owes.
What is the national debt?
The total amount of money circulating in the economy.
What is the money supply?
Raising interest rates and decreasing the money supply are examples of this policy.
What is contractionary monetary policy?
This measures changes in prices paid by consumers.
This measures changes in prices paid by consumers.
The lowest point in the business cycle.
What is a trough?
This provides revenue for government programs.
This provides revenue for government programs.
Buying and selling government securities to influence the money supply.
What are open market operations?
During a recession, the government increases spending and the central bank lowers interest rates. These are examples of these two policies.
What are expansionary fiscal policy and expansionary monetary policy?