Macroeconomic Indicators
When the economy is experiencing inflation, average prices of all goods and services are ____________.
rising
This entity is responsible for Monetary Policy in the USA.
The Federal Reserve System
Which entity is responsible for Fiscal Policy in the USA?
The government (Congress and the President)
debt
When the economy begins to suffer a bit, economists call it a...
Recession
These three macroeconomic indicators are used to measure the "health" of the US economy.
CPI, GDP, and Unemployment Rate
If the economy needs a boost, then the central bank will pursue _____________ Monetary Policy.
Expansionary
What are the two ways Fiscal Policy is carried out?
Taxation and Government Spending
When the government spends exactly as much as it brings in, it has a...
Balanced Budget
During the Great Depression, what happened to prices?
Massive deflation (they fell)
To be counted as "unemployed" in the US, you need to be...
out of work and looking for work
When the central bank is buying or selling bonds, it is conducting _______________________________.
Open Market Operations
raise taxes
The US Government borrows money by...
Selling US Treasury Securities (IOUs)
The Federal Government of the US (Washington DC) does not spend much money on... (NAME ONE)
Education, Foreign Aid, Environment
When comparing two countries and their economies at one point in time, you should use this measurement.
Nominal GDP
By lowering this, the central bank can encourage banks to take out more loans
The Discount Rate
The three biggest government expenses in the US are usually...
Social Security, Defense, and Health Care (Medicare/Medicaid)
Deficit
When it comes to overall average prices, most economists say this is best for an economy.
price stability
When inflation happens, consumers tend to _________ more today.
spend
Name three ways the central bank could SHRINK the money supply.
Selling bonds, raising the Discount Rate, and raising the Reserve Requirement
A government tax on goods that are imported into the United States is called a...
Why has the government spent so much money over the past two years?
The economic crisis caused by the Coronavirus Pandemic
If Snyderland produces $1,000,000 worth of goods and services ("stuff") and has a population of 25 people, what is its per capita GDP?
$40,000