Vocabulary
A required payment to local, state, or national governments.
What are taxes?
These are subtracted when calculating for GDP
What are imports?
The two tools of fiscal policy
What are changing taxes, and changing government spending?
The normal rate of inflation
What is 2-3%?
A worker who was laid off due to a downturn in the business cycle is _________ unemployed
What is cyclically?
An increase in the general price level, causes money to be worth less
What is inflation?
DOUBLE JEOPARDY! Make your bet before answering the question.
The parts that make up CIGNX
What are consumption, investment, government spending, and net exports?
A decrease in Aggregate Demand is beneficial during a(n) __________
What is an expansion?
If aggregate demand increases, it can cause _______
What is inflation?
The natural rate of unemployment
What is 4-6%?
The percentage of the labor force that is jobless and looking for work
What is unemployment rate?
The difference between nominal and real GDP
What is adjustment for inflation?
A plan by the government to increase aggregate demand and stimulate the economy
What is Expansionary Fiscal Policy?
If prices decrease, we experience _________.
Deflation
The four types of unemployment
What is seasonal, structural, frictional, and cyclical?
Document indicating the amount of money the government expects to receive and spend that year.
What is Federal Budget?
Real GDP Formula
What is (Year 1 price x Year 2 product) of each year added together?
A plan by the government to reduce aggregate demand and slow the economy
What is Contractionary Fiscal Policy?
Formula for CPI, or how to calculate inflation
What is current Year Price/Base Year Price x 100?
During times of economic recession the unemployment rate usually __________.
What is increases?
Actions that the Fed takes to influence the level of real GDP and rate inflation.
What is monetary policy?
The unemployment formula
What is unemployed people/labor force x 100?
A 6% sales tax on prepared foods is a __________ tax.
What is regressive?
If businesses increase wages, it is ______
What is cost push inflation?
DOUBLE JEOPARDY! Make your bet before answering the question.
The main problem with the unemployment rate
What is doesn't account for discouraged workers?