Economic Indicators
What economic indicator measures the total value of goods and services produced within a country's borders in a given time period?
What is GDP (Gross Domestic Product)?
The government's decisions regarding taxation and spending are part of what policy?
What is fiscal policy?
Which institution is responsible for controlling the money supply and managing inflation in most economies?
What is the central bank?
This term refers to the exchange of goods and services between countries.
What is international trade?
This term refers to the general increase in the price level of goods and services over time.
What is inflation?
This type of unemployment occurs when workers are between jobs or looking for their first job.
What is frictional unemployment?
This type of fiscal policy involves increasing government spending and/or cutting taxes to stimulate the economy.
What is expansionary fiscal policy?
The Federal Reserve controls the money supply by adjusting this interest rate, which affects the cost of borrowing.
What is the federal funds rate?
What is the term for a tax placed on imported goods to protect domestic industries?
What is a tariff?
A situation in which the economy experiences falling prices, often leading to decreased consumer spending and economic contraction, is called what?
What is deflation?
What percentage of the labor force does not have work?
What is the Unemployment rate?
What is the term for a government’s budget deficit as a percentage of its GDP?
What is the budget deficit-to-GDP ratio?
When the central bank buys or sells government bonds to influence the money supply, this is known as what?
What is open market operations?
This is the term for the ability of a country to produce a good at a lower opportunity cost than another country.
What is comparative advantage?
This term refers to the sustained increase in the cost of living due to rising prices, often measured by the annual percentage change in CPI.
What is the inflation rate?
This economic indicator measures the average change in prices paid by consumers for goods and services over time.
What is the Consumer Price Index (CPI)?
A tax system where the tax rate increases as income increases is known as what?
What is a progressive tax system?
This monetary policy tool involves changing the reserve requirements for commercial banks to control the amount of money they can lend.
What are reserve requirements?
A situation in which a country can produce more of a good than another country with the same amount of resources is known as what?
What is absolute advantage?
This type of inflation occurs when demand for goods and services exceeds supply, causing prices to rise.
What is demand-pull inflation?
This term refers to a sustained increase in the general price level of goods and services, typically measured by the CPI.
What is inflation?
What is the term for when the government reduces its budget deficit by either increasing taxes or reducing government spending?
What is contractionary fiscal policy?
In the event of a recession, central banks may lower interest rates and increase the money supply. This type of policy is called what?
What is expansionary monetary policy?
This term refers to the value of one country's currency in terms of another currency.
What is the exchange rate?
This economic phenomenon happens when the cost of production increases, leading to higher prices for goods and services.
What is cost-push inflation?