Business Cycle
This phase of the business cycle sees the highest productivity and lowest unemployment.
What is the Peak?
This is the sum of all good and services produced within a country in 1 year.
What is Gross Domestic Product?
This part of the government is tasked with implementing Fiscal Policy.
Who is Congress?
This institution is charged with implementing Monetary Policy.
Who is the FED?
This type of Economic Policy is used during a recession to fight unemployment.
What is Expansionary Policy?
This phase of the business cycle sees shrinking unemployment and more businesses being created.
What is Expansion?
This type of economic indicator has a goal of 4-6%.
What is unemployment?
This Fiscal policy tool acts as the revenue for the Federal government.
What are taxes?
By adjusting this, the FED affects the borrowing power of consumers, which directly affects the money supply.
What are interest rates?
What is Contractionary Policy?
This phase of the business cycle sees the highest unemployment and lowest productivity.
What is the Trough?
This indicator is used to measure the rate of inflation.
What is the Consumer Price Index?
This Fiscal Policy tool is debated about when Congress adjusts their budget.
What is government spending?
Open market operations primarily refer to the buying and selling of this.
What are government bonds?
The Federal government lowering taxes and increasing spending is an example of this type of policy.
What is Fiscal Expansionary Policy?
This phase of the business cycle sees growing unemployment and business beginning to shut down.
What is the Contraction?
This type of indicator offers economists daily updates and is often described as either bullish or bearish.
What is the Stock Market?
This occurs if the federal government fails to pass a spending budget by October 1st every year.
What is a government shutdown?
This refers to the amount of liquidity banks need to maintain according to the FED.
What is the Reserve Requirement Ratio?
The FED's raising of interest rates to decrease the money supply is an example of this type of policy.
What is Monetary Contractionary Policy?
This is the purpose of knowing the business cycle.
How do you know the health or state of the economy?
These types of indicators are meant to clarify and confirm data but take longer to analyze.
What are lagging indicators?
John Meynard Keynes argued that government should do this rather than do nothing during a recession in order to boost or stimulate the economy.
What is deficit spending.
This government document contains the economic activity of the 12 districts of the Federal Reserve System, and is used to dictate which type of monetary policy should be implemented.
What is the Beige Book?
The FED buying back government bonds is an example of this type of economic policy.
What is Monetary Expansionary Policy?