Measuring the Economy Part 1
An increase in the overall price level of goods and services produced in an economy. This typically results in the value of a dollar to decrease over time.
Inflation
A statistic that helps economists judge the health of an economy.
Economic Indicator
This is the government's power to tax and spend.
Fiscal Policy
The production, distribution, and consumption of goods and services is known as the
Economy
Government Agency responsible for issuing federal income tax forms and processing tax returns.
Internal Revenue Service (IRS)
The market value of all final goods and services produced in a given period of time.
Gross Domestic Product (GDP)
The percentage of the labor force that is actively seeking employment is known
Unemployment Rate
The Federal Reserve’s control over the money supply and interest rates. They use this to dampen to stimulate the economy.
Monetary Policy
If computer chips become less expensive, how does this affect computer supply?
Increase
The percentage that is levied on the value of whatever is being taxed, such as income or property.
Tax Rate
How do you calculate a nation's GDP?
C + I + G + NX = GDP
Happens when businesses shut down or slow down part of the year
Seasonal Unemployment
Keynesian Economics is also known as what?
Demand-Side Economics
The type of market structure in which only one producer dominates the market.
Monopoly
the idea that citizens should be taxed according to their income or wealth. In this system, the wealthier pay more in taxes.
The Ability to Pay Principle
This happens when a person seeks to enter the workforce or quits one job to seek another.
Frictional Unemployment
The term for when the average price of goods goes down.
Deflation
The economist who believed that the cause of the great depression was a lack of consumer demand. You'd solve this by lowering taxes and increasing government spending.
John Maynard Keynes
When you open up a bag of potato chips and enjoy the first potato chip, but as you continue eating, the satisfaction gradually diminishes. This is an example of what law of economics?
Diminishing Marginal Utility
The ability of people to raise their standard of living and improve their economic status.
Economic Mobility
The nominal cost of basic goods and services adjusted for inflation.
Real Cost of Living
The index used to track the change of prices of common goods over time.
Consumer Price Index (CPI)
The economist who believed that the problem with the great depression was with the money supply. He believed that the solution is to increase the supply of money in the economy to boost production.
Milton Friedman
Trees, Forests, and Fish are all examples of what kind of resource?
Renewable
If you have a proportional tax system, how much would someone pay in taxes if their taxable income was $70,000 a year at a tax rate of 15%.
$10,500