Business Cycle
When GDP falls for two straight quarters, the economy is most likely in this phase.
What is contraction/recession?
GDP measures the total market value of all these produced in a nation.
What are goods and services?
CPI stands for this.
What is the Consumer Price Index?
The Federal Reserve controls the supply of this to influence the economy.
What is money?
This measures the percentage of the labor force that is jobless but actively seeking work.
What is the unemployment rate?
The point where economic activity reaches its lowest level is called this.
What is a trough?
The main purpose of tracking GDP is to see whether the economy is doing this
What is growing or contracting?
The CPI measures average changes in these over time.
What are prices of goods and services?
Fiscal policy is primarily carried out by these two branches of government
What are Congress and the President?
This occurs when workers are voluntarily moving between jobs or are new to the labor market and are searching for their first job. It's a normal part of a healthy economy
When production and employment rise steadily, the economy is in this stage.
What is expansion/recovery?
Accelerating GDP growth is a sign that the economy is in this phase.
What is expansion?
The value of a dollar has _____ over time
Lowering interest rates is an example of this type of monetary policy.
What is expansionary monetary policy?
This type of unemployment results from a fundamental shift in the structure of the economy. It can be caused by technological changes, a lack of skills for available jobs, or industries moving overseas
What is structural?
Business is Boomin to the max during this phase!
What is peak?
The NBER defines this as a significant decline in economic activity spread across the economy for 2 fiscal quarters.
What is a recession?
CPI market is determined by family spending data & changes _______
What is over time?
Buying security bonds is an example of this
This type of unemployment is directly related to the overall economic cycle. During an economic downturn (recession), businesses reduce production, leading to layoffs and increased cyclical unemployment.
What is cyclical?
*Daily Double*List all of the phases of the business cycle?
Expansion (recovery), Peak, Contraction (Recession), Trough
GDP does not measure these aspects of well-being, such as poverty or literacy rates. This is know as ______ of life factors?
What are quality of life indicators?
New CPI / Old CPI / Old CPI x 100
What is rate of inflation
What is increase spending?
This happens when industries require labor for only part of the year. Examples include jobs in agriculture or tourism that may be lost during certain seasons.
What is seasonal?