Inflation
General rise in prices.
What is inflation?
Money taken from your income by the government.
What is income tax?
This shows the percentage of people in the labor force who don’t have a job.
What is the unemployment rate?
The amount buyers are willing and able to purchase at each price.
What is demand?
The value of all goods and services produced in a country divided by the number of people.
What is GDP per capita?
The effect inflation has on the value of a dollar over time.
What is a decrease in purchasing power?
A tax removed before you receive your full paycheck.
What is payroll tax?
People without a job who are actively seeking one.
Who are the unemployed?
As price goes up, this goes down.
What is quantity demanded?
The three main economic goals.
What are economic growth, control, inflation, and control unemployment?
If people quickly reduce their spending when prices rise, demand is considered this.
What is elastic?
A tax added at the point of sale in stores.
What is sales tax?
Short-term unemployment from switching jobs.
What is frictional unemployment?
When prices rise, this usually happens to quantity supplied.
What is quantity supplied increases?
The type of spending that boosts GDP directly.
What is consumption/consumer spending?
Extremely rapid inflation that destroys a currency’s value.
What is hyperinflation?
A tax that increases with higher income.
What is a progressive tax?
People who’ve stopped looking for work but want a job.
Who are discouraged workers?
If the cost to produce a good increases, this happens to supply.
What is supply decreases?
Policy involving changes in taxes and government spending.
What is fiscal policy?
The government's goal of keeping inflation low and steady supports this broader economic objective.
What is price stability?
A tax cut is this type of policy used to boost spending and growth.
What is expansionary fiscal policy?
The unemployment rate when the economy is stable and healthy.
What is the natural rate of unemployment?
The point where the amount supplied equals the amount demanded.
What is equilibrium?
Long-term rise in a country’s ability to produce goods.
What is economic growth?