Economic Growth
Workers increasing their skills and entrepreneurs starting new businesses contribute to this.
Economic Growth
This is deemed as between 4% and 6% unemployment.
Full employment
Identify the term: This is an increase in prices and a fall in the purchasing value of money.
Inflation
The official money issued by a country’s government is this.
Fiat
The Federal Reserve will decrease the interest paid on reserves in order to do this.
Slow economic growth/inflation
C+I+G+(X-M) Stands for This
GDP
The number of unemployed people in a country divided by the number in the labor force times 100 calculates this.
Unemployment Rate
A booming economy occurs during this point in the business cycle.
Peak
The Federal Reserve will decrease the interest paid on reserves in order to do this.
Slow inflation/economic growth
Identify the two fiscal policy tools.
Changes in Government Spending and Changes in Taxes
What does the CPI calculate?
Increase in price level/inflation
Every year when students graduate from college and begin looking for jobs, this type of unemployment occurs.
Frictional
This hurts lenders who lend at fixed rates but benefits borrowers.
Unanticipated Inflation
The interest rate that banks must pay on money borrowed from regional Federal Reserve banks is this.
Discount Rate
Legislation that changes the levels of taxation and/or government spending to stabilize the economy is this.
Fiscal Policy
A way to find this is by dividing the nominal GDP by the CPI and multiplying it by 100.
Real GDP
During a recession, a dry cleaner lays off employees and reduces his hours because people are hand-washing their “dry clean only” items.
Cyclical
In the business cycle, a recession will occur during this point.
Contraction
Identify the 3 goals of the Federal Reserve.
Steady Economic Growth, Price Stability, and Full Employment
When concerned about inflation, a government might change taxes this way.
Increase taxes
The total quantity of all goods and services consumers are willing and able to purchase and that producers are willing and able to make are these.
Aggregate Demand and Supply
It’s time to harvest the grapes and a California vineyard hires extra workers. What type of unemployment is this?
Seasonal
The lowest point in the business cycle is this.
Trough
Identify 8 of the 12 Reserve banks
Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco
When the Fed is making policy decisions, what are the two effects their policies could have on the economy?
Expansionary and Contractionary