Indicators and Business Cycle
The total market value of all final goods and services produced within a country's borders during a specific period.
Gross Domestic Product (GDP)
The government's use of taxation and spending to influence the economy
Fiscal Policy
The name of the group that implements monetary policy
The Federal Reserve/The Fed
Rules established by the government that businesses and individuals must follow (specific term we used in class)
Regulations
Used to measure inflation
Consumer Price Index (CPI)
This type of policy is implemented when Congress cuts taxes and increases government spending to fight a recession
Expansionary policy
During a recession, the Fed wants people to ________ borrowing and spending
Increase
Gives an inventor legal protection for an invention for a limited period, generally allowing the inventor to exclude others from making, using or selling it without permission.
Patent
This phase of the business cycle has economic activity reach its lowest point before recovery begins
Trough
What should happen to interest rates when experiencing an overheating economy?
Interest rates should increase
This type of tax takes a larger percentage of income from higher-income earners
Progressive
GDP per capita
The economy is experiencing high inflation and excessive demand. What SPECIFIC example of fiscal policy could Congress use to slow the economy?
Increase taxes, decrease spending
This stage is where the economy experiences falling real GDP, declining production, and rising unemployment for one quarter
Contraction
A government collects $4 trillion in revenue but spends $4.6 trillion in one year. Identity whether this creates a deficit or surplus, and calculate the amount of deficit or surplus
Deficit, 0.6 trillion (or 600 million)