Unemployment
At what point of the business cycle is there typically high unemployment?
A trough
What is inflation?
The decrease in value of the dollar over time
What does GDP stand for?
Gross Domestic Product
What is the Business Cycle?
The measurement of upswings and downswings in the overall economy
Discretionary spending is decided by...
The president and congress
The type of unemployment that results from new workers looking for their first job.
Frictional Unemployment
What is "built in" inflation?
GDP is often used to state this..
What is the quality of life in a country or an economy's strength and size
What is the contractionary phase of the business cycle?
Social security is an example of what type of spending?
Mandatory spending
The period of growth that follows a trough
expansion
How do production costs play a role in inflation?
Producers may have to pay higher wages and pay higher prices for raw materials
Who are the three groups that account for spending throughout a country to calculate GDP?
Households, Businesses, and the government
What is the trough aspect of the business cycle?
The lowest portion of the business cycle
The purpose of the federal reserve is...
The highpoint of expansion, that precedes contraction.
peak
What is Demand Push Inflation?
When consumer demand outpaces businesses ability to produce products
What are the three economic goals of any country?
Annual Growth
Low Inflation
What era in U.S. history had the longest expansion?
Deficit Spending is when...
Government spending when the U.S. is in debt to help stimulate the economy
What is the unemployment formula?
Unemployed workers/ total labor force=unemployment rate
Why is inflation not always considered a detriment to the economy?
Subtle inflation raises wages and increases the value of investments over time
What are the four components to GDP
Personal Consumption
Business Investment
Government Spending
Net exports of goods and services
How are business cycles measured?
From peak to trough
In times of economic downturn, provide businesses and individuals economic assistance to prevent depressions