The FED
Federal Reserve
What market are we in?
The ___ scope of the economy.
Broader OR Bigger
What is the highest point on the business scale?
Peak
What does the acronym GDP stand for?
Gross Domestic Product
Price stability and maximum employment
What might encourage people to make certain choices?
Incentives
True/False: Macroeconomics relates to pricing and resource allocation
False
What is the lowest point in the Business Cycle
Trough
What employment is this?-- Short-term time frame (e.g. Transferring jobs)
Frictional employment
What is the inflation goal the Fed sets for the U.S economy
2%
What is Fiscal policy
The use of government spending and taxation to influence the economy
The output of goods and services produced by labor and property located within a country
Gross Domestic Product (GDP)
Define depression/trough within the business cycle
Long period of unemployment, business failures, or decreased economic activity
What is the Fed's goal for the inflation rate?
2%
Where is the Fed locted
Washington D.C
What is one of the most important economic measurements used to determine the health of an economy
Unemployment Rate
What entities decide on macroeconomic policies?
Central Banks & National Governments
What do consumers and businesses do in times of expansion?
Consumers more likely to spend money on big-ticket items and durable goods; Business more likely to invest in capital and labor
Cyclical unemployment is a ___-term disturbance due to economic downfall and recession, while structural unemployment is ___-term due to a mismatch in worker skills and job requirements.
short, long
Who is the current chair of the Federal Reserve
Jerome Powell
What determines inflation
Consumer Price Index (CPI)- Change in price over time of a specific group of goods and services the average household uses
Name one factor macroeconomics focuses or analyzes on?
Business cycle, unemployment rate, interest rates, government spending, or economic growth
What does the government do in times of recession/contraction?
may create incentives to encourage consumers to spend money, such as tax credits or “stimulus” payments
When did the GDP first come into use?
Mid 1930s