Macroeconomics & GDP
The study of the large economy as a whole is called what?
Macroeconomics
What is Frictional Unemployment?
Temporary Loss of Job, can transfer to another job easily with transferable skills.
What is Inflation?
The general rise in prices that reduce purchasing power.
What happens during Fiscal Policy?
The government takes actions to stabilize the economy through taxation and government spending
What happens during Monetary Policy?
When the government adjusts the money supply to speed or slow down the economy
Name one component of GDP
Business Investments, Government Spending, Net Exports, Consumer Spending
When a recession occurs, this type of unemployment happens
Cyclical Unemployment
What is the Inflation Rate?
The percent change in prices from year to year.
Who is in charge of Fiscal Policy?
Congress
Who is in charge of Monetary Policy?
The Federal Reserve (The Fed)
What is one Macroeconomic Goal for every country?
Limit Unemployment, Reduce Inflation, Promote Economic Growth
What key term describes periods of high inflation and periods of recession?
Business Cycle
How does the United States measure inflation?
Consumer Price Index
When the government increases taxes and decreases government spending is called...
Contractionary Fiscal Policy
When banks are required to hold a certain percentage of money is called...
Reserve Requirement
What key term helps us measure a country's standard of living?
GDP per Capita
When Tech Workers are kicked out of their jobs because of A.I. its called what type of Unemployment?
What is the difference between nominal and real wages?
Nominal Wage does not measure by purchasing power, real wages adjust for inflation.
When the government decreases taxes and increases government spending is called...
Expansionary Fiscal Policy
When the U.S. treasury charges interest on loaning out money to commercial banks
Discount Rate
When a country produces more than it brings in from another country is called what?
Net Exports
What would disqualify you from being part of the official labor force?
below 16, unwilling to work, being hospitalized, being part of the military.
List one problem with the Consumer Price Index
Substitution Bias, New Products, Product Quality
When government spending is more than what the government takes in taxes is called...
Budget Deficit
When the U.S. Treasury buys and sells government bonds and securities to stabilize the economy
Open Market Operations