Unemployment & Inflation
Unemployment Terms
Fiscal Policy
Monetary Policy
Macroeconomics
100
How is unemployment defined?
Defined as: people who are available for work and seeking a job
100
What is the term to describe workers who are between jobs?
Frictional Unemployment
100
What is Fiscal Policy?
It is the use of government spending and taxation to influence the economy. Governments use fiscal policy to promote economic growth, reduce poverty, and stabilize prices.
100
What is Monetary Policy?
a set of actions by the nation's bank to control the overall money supply and achieve economic growth.
100
What is Macro Economics?
It is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.
200
Who are the people not included in the unemployment rate?
Retired people
Those not looking for a job
200
What type of unemployment descirbed people who are replaced by machines?
Technological Unemployment - when machines replace jobs of humans
200
What does Fiscal mean?
something that relates to government money or public money, especially taxes.
200
Why do governments rely on monetary policy?
Governments have often relied on monetary policy to target low inflation.
200
What is Keynesian economics?
A type of economics based on the idea that government intervention can stabilize the economy.
300
What is the equation to calculate the Unemployment Rate?
300
What is the term for workers who are no longer needed at certain times of the year?
Seasonal Unemployment- when a season changes and services aren’t needed
300
What is an example of Fiscal Policy?
- tax cuts and
-increased government spending.
300
What does Monetary Policy influence?
Monetary Policy can influence the demand and supply of money, primarily through the use of interest rates.
300
Who founded Keynesian Economics?
British economist John Maynard Keynes (1883–1946) is considered the founder.
400
If wages go up, will demand (most likely) go up or down?
Demand will go up as discretanry income may rise.
400
What term descirbed workers whose job ebbs and flows in business cycles?
Cyclical Unemployment
400
What 3 factors are the Governments goal for Fiscal Policy?
- Full employment
- A high rate of economic growth
- Stable prices and wages
400
What is Contractionary monetary policy?
When inflation is high, the central bank can raise interest rates or restrict the money supply to lower inflation.
400
What is aggregate demand?
It is the total quantity of all goods and services consumed in an economy at all possible price levels at a given time.
500
What is the GDP and why is it important?
Gross Domestic Product (GDP) is a measurement of a country's economic health and is one of the most influential economic measures. It's calculated by adding the value of all goods and services produced within a country in a given period of time, minus the value of the goods and services used to produce them.
500
What are the BIG IDEAS of the Two Factor Circular Flow Model?
Money flows from households to businesses as consumer expenditures in exchange for goods and services produced by the businesses, then flows back from businesses to households for the labor that individuals provide.
500
What are the 3 types of Fiscal Spending?
Mandatory spending
Discretionary spending
Supplemental spending
500
How can Monetary Policy Influence inflation?
Monetary Policy can raise interest rates or restrict the money supply ---- both contractionary monetary policies designed to lower inflation.
500
What is contractionary spending?
A government fiscal policy that reduces aggregate demand and slows economic growth.