Business Cycle
What does the business cycle represent?
Rises and declines in business or the economy
Name one market failures
Public goods, externalities , information asymmetry, factor immobility, monopolies
What does GDP Stand for
Gross Domestic Product
What is globalization?
growing connection between countries through trade
What is Macroeconomics?
the behavior of the entire economy
What does Consumer Price Index (CPI) measure?
Inflation
Does expansionary fiscal and monetary policy boost or slow the economy down?
boost the economy
Which product would be counted towards GDP?
a. a new car
b. a used car
a. new car
What is the difference between an import and an export?
Export=out
Import=out
How is macro different from micro?
Macro is the entire economy, while micro is individual markets
When inflation increases, the purchasing power of money _________
decreases
Fiscal policy is
how the federal government spends money and taxes
What sector of GDP makes up the majority of GDP in a country?
C= consumer sector
Name a negative affect of globalization
job loss, economic dependence, environmental concerns, worker exploitation
Name 2 macroeconomic issues
inflation, unemployment, national income, growth, government policies
The phase where the economy is shrinking is called
contraction
Monetary Policy is
how the federal reserve controls the money supply and controls interest rates
What does sector G of GDP include?
all government spending
Tariffs, quotas, embargoes are examples of......
trade restrictions
What type of unemployment is this?
A person is laid off because of a new technological invention
Structural
The phase where the economy is growing is called
Expansion
Pollution is an example of what market failure?
negative externality
What does GDP per capita measure?
What is free trade?
trade without any restriction
What are the 3 main goals of macro economics
growth, low unemployment, stability