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Vocab 1
Vocab 2
Monetary policy
Fiscal policy
Combination of unit 9,10,and 11
100
General increase of prices in the economy
What is inflation
100
Percentage of a nations labor force that is currently not working but actively looking for work
What is unemployment
100
Actions that federal reserve system takes to influence the level of real gdp and the rate of inflation in the economy
What is monetary policy
100
The use of government spending and revenue collection to influence the economy
What is fiscal policy
100
Tax for which the percentage of income paid in taxes increases as income increases - US income tax
What is progressive tax
200
Dollar value of all final goods and services produced within a country's borders in a given year
What is GDP
200
Price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer
What is consumer price index
200
Economic activity increases and it is used when the gov't is concerned about contraction or recession (full employment)
What is the increase in spending
200
Tax in which the percentage of income paid in taxes remains the same at all income levels
What is proportional tax
300
Minimizing increases in price level over time so that a country's money will retain its purchasing power over time
What is stable price
300
Interest rate that banks get charged to borrow money from the Fed.
What is discount rate
300
Tax in which the percentage of income paid in taxes decreases as income decreases- US sales tax
What is regressive tax
400
The value of current GDP adjusted for inflation
What is real gdp
400
Refers to state of economy virtually all who are willing and able to work have the opportunity
What is full employment
400
The buying and selling of treasury securities by the Fed.
What is open market operations
400
Economic activity falls and the government uses it when it's concerned about inflation (price stability)
What is increase in taxes
400
The dollar amount that a country is over budget within a given year
What is government deficit
500
All goods and services in the economy available at all possible price levels
What is aggregate supply
500
When an economy is increasing in size. New jobs being created. New resources available and buisnesses making money
What is economic growth
500
If banks keep money at the Fed. the Fed. will pay them interest for those deposits
What is interest on reserves
500
Economic activity rises and the government uses it when it's concerned about contraction or recession(full employment)
What is decrease in taxes
500
Unemployment that happens when the season changes
What is seasonal unemployment