Macro 101
What is opportunity cost?
What us the value you give up for making a decision
This entity controls the money supply and interest rates in the U.S.
What is the Federal Reserve
When a country's imports exceed its exports, it runs this
What is a trade deficit
This type of GDP adjusts for inflation to reflect the true growth of an economy.
What is real GDP
The federal income tax is a progressive tax, which means _____.
What is the tax rate increases as incomes increases
Define Macroeconomics
What is the study of economies as a whole
This policy tool involves changes in government spending and taxation to influence the economy.
What is Fiscal Policy
A tax imposed on imported goods to protect domestic industries
What is a tariff
This measure of inflation tracks the average change in prices of a fixed basket of goods and services over time.
What is the consumer price index (CPI)
The federal reserve requires banks to hold more money in their reserves. This is represented of what type of policy?
What is Tight Money Policy
Total dollar value for good and services sold within a nation in a single year
What is GDP
The interest rate that the Federal Reserve charges on loans to its member banks is the __.
What is the Discount Rate
This agreement between Canada, Mexico, and the U.S. reduced trade barriers.
What is NAFTA
These are used to prevent companies from price colluding or creating monopolies
What is antitrust laws
The government often runs this when it spends more money than it collects in taxes.
What is a budget deficit
This term refers to an extended period of economic decline lasting two or more consecutive quarters.
What is Recession
When the Federal Reserve lowers interest rates to boost borrowing and spending, it is using this type of monetary policy.
What is expansionary monetary policy
The total value of goods and services a country produces, including those produced abroad by its citizens
What is Gross National Product (GNP)
Which amendment gives the federal government the power to take private property for public use with compensation
What is the 5th amendment
The GDP formula is GDP = C + I + G + (X - M). The I stands for this.
What is Investment
The tax on goods the government doesn't want to promote.
What is Excise Tax or Sin Tax
The Federal Reserve's most commonly used tool to control the money supply.
What are open market operations
The international organization that helps resolve trade disputes and sets global trade rules.
What is the World Trade Organization (WTO)
What does the government sell in order to make money?
Where is the NASCAR race this upcoming weekend?
What is Austin, Texas or Circuit of the Americas