GDP - Models and Concepts
Total GDP is calculated with investment, government and consumer spending and this category.
What is net exports?
This is a period of temporary decline during the business cycle identified by a fall in GDP for two successive quarters
What is a Recession?
This is the sudden withdrawing of deposits from multiple banks all at the same time.
What is a bank panic?
This institution is responsible for controlling our nation's money supply
What is the Federal Reserve?
This is the curve that represents income inequality.
What is the Lorenz curve?
In calculating GDP, to make sure certain items are counted only once, economists use only this category of good.
What is a final good?
These are the four components of the business cycle.
What is Expansion, Peak, Contraction, and Trough?
The maximum amount of money that a bank is allowed to loan is equal to this value.
What are excess reserves?
Monetary and Fiscal policy can be split into these two categories to reduce or encourage growth.
What are contradictory and expansionary policies?
This is the graph that displays manufacturing choices for an economy or a nation.
What is a Production Possibilities Frontier?
This is the category of GDP that is calculated while adjusting for inflation.
What is Real GDP?
Lasting from 1929 to 1941, this is a massive event in United States Business Cycle history.
What is the Great Depression?
The term length for a member of the Federal Reserve Board of Governors.
What is a 14 year term?
Expansionary Fiscal Policy is based around decreasing taxes and increasing this.
What is government spending?
Retirees and Students are not included in this measurement of employment.
What is the Labor Force Participation Rate?
This is commonly used as an economic indicator for quality of life in any given country in macroeconomics
What is Real GDP per capita
The natural rate of unemployment is an idealized calculation where this type of unemployment doesn't exist.
What is cyclical unemployment?
This is the sum of currency currently in circulation, money in checking accounts, and liquid depostis.
What is M1?
What is the discount rate?
When the U.S. government increases spending, this happens to the market for loanable funds.
What is a shift to the right in demand?
Cooking at home, volunteer work, used cars, and leisure time.
What are categories not included in GDP calculation?
Average weekly work hours, stock prices, interest rates, and inflation.
What are leading indicators for the business cycle?
This independent federally created organization that insures deposits held at commercial banks.
What is the FDIC?
This is an economic theory that explains how government spending reduces private spending.
What is the crowding out effect?
This is the curve in economics that displays inflation's and unemployment's inverse relationship.
What is the Phillips Curve?