The Business Cycle
Expansion is what?
When the economy grows.
Predicting changes in the business cycle is a critical what?
Job.
Provides loans to small businesses, collects taxes, provides this to the people.
Instead of being self-sufficient, people tend to do this: concentrate on producing certain kind of goods or services
Specialize.
This is international trade without any government regulation.
Free trade.
Consumers spend money based on their perceptions of the state of this.
Economy.
Helps governments determine how much money they should spend or expect to make in what?
Revenue.
Government regulation has four main goals:
Protect workers, protect consumers, limit negative effects, and encourage competition.
Specialization makes this possible-many countries specialize in producing certain goods.
International trade.
These argue protect tariffs will protect domestic industries
Protectionists.
Individuals and businesses do this when interest rates are low.
Three factors:
Leading, coincident, lagging.
This protects people from unsafe foods and medicines.
FDA
Relying on other people for some goods and services is known as this.
interdependence.
Protectionists believe reducing foreign competition creates more jobs at
Home.
After exiting this, the economy will start to expand again and start the cycle all over
The trough.
Show economists how the economy is doing at the present time.
Coincident indicators.
Another goal of government regulation is to limit some of these economic activities.
Negative effects.
Countries only trade the goods and services they wish with the countries they...?
Choose.
Protectionists argue free trade leads businesses to.
Overspecialization.
What affects the U.S. economy?
Availability, location, and movement of human and capital resources.
Helps economists determine how long the current phase may last or what caused that phase in the first place.
Lagging indicators.
Government does have the power to regulate use of this.
Property.
Interdependence can create problems when a good/service becomes
Unavailable.
Free-trade supporters believe this forces businesses to produce the best product.
Competition.