Federal Reserve
What is the shortened name for the Federal Reserves?
The Feds
Define unemployment.
The state where individuals who are capable of, available for, and actively seeking work are without a job.
Who controls Monetary policy?
The Federal Reserves
Who controls Fiscal Policy?
Congress and the U.S. President
What is the highest point of a Business Cycle Map called?
Peak
What is the Federal Reserves target inflation rate?
2%
Who is considered part of the Labor Force?
16+ years old, Currently working , Looking for job for at least 4 weeks
What is the main purpose of Monetary policy?
Promote maximum employment, stable prices (low inflation), and moderate long-term interest rates.
What is the main purpose of Fiscal Policy?
To stabilize the business cycle
What does GDP stand for?
Gross Domestic Product.
What primary tool does the federal reserves use to influence economic activity?
Monetary Policy
Who is NOT considered apart of the Labor Force?
Under 16 Active, Military , Institutionalized, Not working or seeking work
What happens when inflation raises above the Federal Reserve target?
They raise interest rates to reduce spending.
When is expansionary fiscal policy used?
During recessions to boost economic activity
What are the 5 key patterns of a Business Cycle Map?
Recession, Contraction, Peak, Trough, Expansion
What are the two objectives given to the federal reserves from Congress?
Maximum employment and price stability
What type of unemployment is this: Mismatch employer and skills needed to work functionally at job
Structural unemployment.
What type of Monetary policy is used to increase and money supple and lowers interest rates to stimulate economic activity?
Expansionary Policy
What type of fiscal policy is it when government spending is fully funded by tax revenue?
Neutral fiscal policy
What type of economics does GDP fall under?
Macroeconomics
Who is the current chair of the Board of Governors? (From the podcast transcript we read)
Jannet Yellen
What is Cyclical unemployment?
The work/ business cycle being terrible leads to not having a job (low demand)
What are the 3 primary tools monetary policy?
What is used to cool down an overheating economy or fight inflation by reducing spending or raising taxes?
Contractionary fiscal policy
How long must a recession last to be considered a recession?
Two consecutive quarters of negative GDP growth.