GDP
The total value of goods and services produced in a country.
What is Gross Domestic Product (GDP)?
The general rise in prices over time.
What is inflation?
This is the natural rate of unemployment in the United States.
What is 4%?
This U.S. institution controls monetary policy and interest rates.
What is the Federal Reserve?
This stage of the business cycle includes falling GDP and rising unemployment.
What is a recession/contraction?
These purchases are NOT included in GDP because they were produced in previous years.
What are used goods?
This inflation rate is generally considered healthy for the economy.
What is 2%?
These people are willing and able to work, actively searching for jobs, but currently jobless.
Who are the unemployed?
This is the process of adjusting interest rates to influence the economy.
What is monetary policy?
This principle says people should compare the costs and benefits of a decision.
What is the cost-benefit principle?
This measures the value of goods and services using current prices without adjusting for inflation.
What is nominal GDP?
This term describes a general decrease in prices.
What is deflation?
This group includes both employed and unemployed workers.
What is the labor force?
This is the use of government spending and taxation to influence the economy.
What is fiscal policy?
This principle focuses on what is given up when making a choice.
What is the opportunity cost principle?
This measures the value of goods and services while adjusting for inflation to better compare economic growth over time.
What is real GDP?
This measures the price level of a basket of goods and services.
What is the Consumer Price Index (CPI)?
This term describes a mismatch between labor supply and labor demand.
What is labor underutilization?
This type of fiscal policy includes increasing government spending and cutting taxes.
What is expansionary fiscal policy?
This occurs when government spending exceeds government revenue over time.
What is national debt?
These are subtracted from GDP because they are not produced domestically.
What are imports?
Increasing demand, higher production costs, and printing too much money are all examples of this.
What are causes of inflation?
If a country has 8 million unemployed people and a labor force of 160 million, this is the unemployment rate.
What is 5%?
This type of fiscal policy is used to slow inflation by reducing spending or raising taxes.
What is contractionary fiscal policy?
This principle explains that decisions are connected to outside events, future expectations, and the actions of others.
What is the interdependence principle?