Index used to measure price changes for a market basket of frequently used consumer goods.
What is the Consumer Price Index (CPI)?
100
The vertical (y-axis) is real GDP.
The horizontal (x-axis) is time.
What is the business cycle?
100
Individual Income Taxes
Borrowing
Payroll Taxes
Corporate Income Taxes
Excise, Estate, and Gift Taxes
What is sources of government revenue?
100
Occurs when a country's real GDP has declined. Happens after a peak but before a trough in the business cycle.
What is contraction of the business cycle?
200
The CPI is a more accurate reflection of the changes in the cost of living than what other measure of inflation?
What is the GDP deflator?
200
Monetary value of all final goods, services, and structures produced within a country's national borders during a one-year period.
What is Gross Domestic Product (GDP)?
200
Vertical (y-axis) is price level.
Horizontal (x-axis) is real GDP.
Curve slopes from bottom left to top right.
What is aggregate supply?
200
Proportional
Progressive
Regressive
What are the types of taxes?
200
Sustained rise in the general level of prices of goods and services.
What is inflation?
300
A decrease in GDP causes a leftward shift in this aggregate?
What is aggregate demand?
300
Tax in which percentage of income paid in tax is the same regardless of the level of income.
What is a proportional tax?
300
When the economy reaches a peak (the place where real GDP stops going up) and ends with the trough (the turnaround point where real GDP stops going down).
What is a recession?
OR
What is the first phase of the business cycle?
300
Discount rate
Reserve requirements
Open market operations
What are the three tools of monetary policy?
300
The central bank of the United States and the most powerful financial institution in the world. Created to provide the nation with a safe, flexible and stable monetary and financial system.
What is the Federal Reserve?
400
When inflation increases the Fed raises interest rates to curb consumer spending. Exemplifying this monetary policy.
What is contractionary monetary policy?
400
Period of uninterrupted growth of real GDP, industrial production, real income, and employment lasting for several years or more; recovery from recession.
What is expansion (period between trough and peak #2)?
400
Amount of real GDP consistent with a given price level.
What is macroeconomic equilibrium?
400
Supervising and examining state member banks
Lending to depository institutions to ensure liquidity in the financial system
Providing key financial services that undergrid the nation’s payment system
Examining certain financial institutions to ensure compliance with federal consumer protection and fair lending laws
What are the four responsibilities of the Fed?
400
Annual government spending in excess of taxes and other revenues.
What is deficit spending?
500
Social Security, Medicare, and unemployment insurance are funded by this tax paid to the Federal Government.
What is the payroll tax?
500
1. Medium of exchange
2. Measure of value
3. Store of value
What are the three functions of money?
500
This is how the business cycle is measured.
What is from 'peak to peak'?
500
Reduced purchasing power
Distorted spending pattern
Encouraged speculation
Distorted distribution of income
What are the causes of inflation?
500
A federal health-care program for senior citizens, regardless of income.