Random 1
What are the Three economics goals of every society ?
1 Stable prices
2 Full employment
3 Economic growth
Define dollar value
the selling price for goods and services
name six characteristics of money
durability
portability
divisibility
uniformity
acceptability
limited supply
what is currency?
paper bills or coins used as money
what is monetary policy
a decision that us made by federal reservice make about money and banking
what are three use of money? define
medium exchange: anything used to determine value
united or accounting-ways to compare values
store of value-money keeps its value
what is natural resources?
countries with larger about of natural can have higher GDP
What are the Four phases of business cycle?
Peak
contraction
trough
expansion
what is inflation
when companies up the prices on goods and services
what is market basket
a fixed list of items to trace inflation
what is real GDP
dollar values of good and service within a country
name three out of the five types of unemployment? define
Frictional-people that have jobs or go to school
cyclical-while economy has fallen
structural-skill of the unemployment does not match job
what us hyperinflation
when prices of goods and services go up more then 50%
what does GDP measure?
the value of economics activity .
what is the GDP calculation? name all of the letters
C+I+G+(X-M)
Consumption
Investment
Government
X-M-New Export
what is human capital ?
knowledge leads to greater production
what is the difference of nominal and real GDP
nominal GDP is GDP given in current price without adjusting for inflation
what is labor force
total number of eligible adulates that can work
what is automatic stabilizer
any part of the government budget that offsets fluctuations in aggregate demand.
the use of government spending and taxation to influence the economy.
a set of economic measures taken by a government or central bank to stimulate economic growth.
what is contractionary fiscal policy
when the government either cuts spending or raises taxes
what is discretionary fiscal policy
the government make changes to tax rates and or levels of government spending
what is the multiplier effect
the effect on national income and product of an exogenous increase in demand
how many federal reserve banks are there
there is 12