MONEY
This is anything commonly accepted in exchange for goods and services.
What is money?
These institutions accept deposits and make loans.
What are commercial banks?
This measures the total value of all final goods and services produced in a country.
What is GDP?
This phase is the lowest point in the business cycle.
What is a trough?
This is a general rise in prices over time.
What is inflation?
This problem made barter inefficient because both parties had to want what the other had.
What is double coincidence of wants?
This system means both state and federal governments regulate banks.
What is the dual banking system?
These goods are excluded from GDP to avoid double counting.
What are intermediate goods?
This type of unemployment occurs when people are between jobs.
What is frictional unemployment?
These adjustments help incomes keep up with inflation.
What are COLAs?
This function of money allows it to be saved for future use.
What is store of value?
This group makes decisions about open market operations.
What is the Federal Open Market Committee (FOMC)?
Name one of the four components of GDP.
What is consumption, investment, government spending, or net exports part of?
This unemployment is caused by a mismatch of skills.
What is structural unemployment?
This type of inflation is caused by rising production costs.
What is cost-push inflation?
One of the five desirable characteristics of money is portability.
What is portability?
This is the interest rate the Fed charges banks for loans.
What is the discount rate?
This occurs when imports exceed exports.
What is a trade deficit?
This is defined as two consecutive quarters of declining GDP.
What is a recession?
This fiscal tool involves government spending and taxation.
What is fiscal policy?
This measure of money supply includes savings deposits and is broader than M1.
What is M2?
This Fed role means it lends money to banks in emergencies.
What is lender of last resort?
These policies (like tariffs and quotas) are used to limit imports.
What is protectionism?
This theory says changes in money supply drive the business cycle.
What is the monetary explanation?
This Keynesian idea involves government spending to stimulate the economy.
What is pump priming?