Business Cycle
this phase is the height of expansion where unemployment is at its lowest.
What is peak?
this is what GDP is short for and one indicator of economic health.
What is Gross Domestic Product?
this type of economic indicator is used to measure economic change as it happens and includes personal income and total industrial production.
what is coincidental?
This type of tax takes more from those with more money and is used in income tax.
What are progressive taxes?
These two parts of the federal government make fiscal policy through the federal budget.
What is congress and the president?
this is the term used when a contraction has been going on for at least 6 months.
What is a recession?
this type of GDP is based on prices right now and does not adjust for inflation.
What is Nominal GDP?
to be considered in the unemployment rate you must meet the following criteria: 16+, unemployed, looking for work, and ...
what is not institutionalized?
This type of tax only pertains to income tax and does not currently exist.
What are proportional taxes?
These types of fiscal policies are made to try and increase the output of the economy.
What are expansionary policies?
during this phase, unemployment is going up and demand for goods and services is going down.
What is a contraction?
this type of GDP is based on BOTH accounting for inflation and for the population of the country.
What is Real GDP per Capita?
this type of unemployment is completely natural and deals with people who are between jobs or right out of school.
what is frictional unemployment?
This type of tax that is taken out of each paycheck is to ensure that you have an income when you retire.
What is social security?
Increasing taxes and/or reducing government spending falls under this type of policy.
What is contractionary policies?
this type of factor that can affect the business cycle includes wars and natural disasters.
What are external shocks?
the three questions that must be answered as yes for GDP to have risen are: was it produced in the U.S., was money exchanged in a formal market, and...
Was a new final good made this year?
this type of unemployment is not natural and is when the skill is no longer needed meaning you can no longer get a job in that field.
What is structural unemployment?
This is the most expensive line item under discretionary spending for the federal government.
What is defense/military?
taxes being lowered can lead to this in the long run of the economy.
What is inflation?
this type of factor includes the buying or selling of stocks and bonds.
What is investment in business?
these are things that are excluded from the GDP calculation. Name any of the five.
what are inputs/used goods, intermediate goods, transfer payments, illegal/informal transactions, and housework?
This cause of inflation is when demand exceeds the supply and prices rise. (Too many dollars, Too few goods)
This is the acronym for the Federal law/act that funds programs such as Medicare, Social Security, and Unemployment benefits.
What is FICA?
This is a way that the goverment borrows money due to being in alrge amounts of debt.
What is selling bonds?