GDP
What does GDP stand for?
Gross Domestic Product
When was the only time the United States was in an economic depression?
Great Depression
What is considered full employment?
Between 4%-6%
The rise in prices over time is known as what?
Inflation
The type of tax placed on goods and services that we buy is what type of tax?
Sales
How do we get our net exports?
Exports minus imports
How do we know when a country is in a recession?
2 or more quarters of a reduction in real GDP.
16
The main price index that economists use to study price stability and inflation is what?
Consumer Price Index
What 2 fiscal tools does the government have?
Taxes and spending
T/F- a computer chip that has been put into a computer would be included in the calculation for GDP.
False
During a recession, what indicator tends to rise?
Unemployment
The percentage of people who are actively looking for a job but have not found one is what?
Unemployment rate
What is demand-pull inflation?
Prices rise because the demand for goods and services also rise.
The Federal Reserve
What makes up the largest portion of the United States' GDP?
Consumer spending
During an expansion period what indicator tends to rise?
Inflation
What does it mean that someone is seasonally employed?
Their job is only really needed during a certain time of year, and may not have that job during the other times of the year.
What is hyperinflation?
Very high rates of inflation.
What type of money has value because the government says it does?
Fiat
How do we measure economic growth and output of a country?
Gross Domestic Product
The Subprime Mortgage Crisis caused what famous recession?
2008/Great Recession
Cyclical unemployment is caused by what?
Business cycles
What is stagflation?
Real GDP goes down while inflation is occurring.
The largest portion of discretionary spending goes to what?
Defense