Measuring the Economy
Identify the 4 phases of the Business Cycle
Recovery / Expansion
Peak
Contraction / Recession
Trough
The full name of the nation's central bank
The Federal Reserve System
What is the approximate level of the National Deficit
1.8 Trillion from last fiscal year
(projected to be 2 trillion in this FY)
Explain the difference between Imports and Exports
Imports are goods brought into the country
Exports are US goods that go to other countries
What does "GDP" stand for?
Gross Domestic Product
Identify 4 distinct ways to measure economic health
Inflation
GDP
Unemployment
Stock Market
(Personal Income; Housing; etc)
Name the 3 "functions" of money
Medium of Exchange
Store of Value
Measure of Value (unit of account)
What are the two variables that Congress can control with Fiscal Policy?
Raise Lower Government Spending
When exports are greater than imports
Trade surplus (or positive balance of trade)
What does "S&P 500" stand for?
Standard & Poor's 500
(Stock Index)
What does the Business Cycle track / follow?
Real GDP
What 3 tools does the Fed use when it engages in Monetary Policy?
Raise / Lower Interest Rates
Raise / Lower Reserve Requirements
Buy / Sell Government Securities
What are the 3 major TYPES of taxes and provide an example of each
Progressive (Federal Income Tax
Regressive (Excise taxes and Sales Tax)
Proportional (Property tax; NC Income tax)
Protective tarriffs
What does "DJIA" stand for?
Dow Jones Industrial Average
(Stock Index of 30 diverse companies)
Identify these numbers and how they relate to the health of the Economy:
4.1%
2.6 %
43,307
Current Unemployment Rate
Current Rate of Inflation
Dow Jones Industrial Average
The FDIC currently protects deposits up to what level?
$250,000
Identify 4 examples of federal taxes and explain each one
Income Tax
Tarriffs
Excise Tax
Payroll tax
Corporate Income tax
Estate tax
Explain the difference between Absolute and Comparative Advantage
Absolute Advantage is being the low cost producer
Comparative Advantage is when a country has a lower opportunity cost
What does "FDIC" stand for?
Federal Depositors Insurance Corporation
Name the 4 types of Unemployment and provide examples of 2 of them from The Jungle
Frictional
Seasonal
Cyclical
Structural
What is the main difference b/w a Commercial Bank and a Credit Union
CU are only open to its members
Explain the difference b/w Mandatory Spending and Discretionary Spending AND provide an example of each
Mandatory (SS; Medicare; Medicaid)
Discretionary (Military; Infrastructure; Nat'l Parks, etc)
The "Elephant Chart" in yesterday's video, demonstrated what phenomenon?
Growth in income in developing Countries and Top end. No growth for working class in Developed countries
What does USMCA stand for?
United States Mexico Canada Agreement
(allows free trade among the 3 North American countries)