Economic Growth
A nation's total yearly output of goods and services; the best indicator for a country's economic health.
Gross Domestic Product (GDP)
This is the lowest stage of the business cycle.
Trough
This type of policy (both fiscal and monetary), increases demand, and thus, increases in the money supply.
Expansionary
What is the main source of revenue for governments to fund themselves, provide services, and uphold their responsibilities?
Taxes
What is the minimum amount of money that banks need to have on hand?
Reserve Requirement
Scarcity
The United States enacted one of these against Cuba in 1962. OPEC also enacted one of these against western nations in 1973.
Embargo
This type of unemployment occurs because of the usual economic upturns and downturns; which causes a decrease in demand, which causes workers to be laid off.
Cyclical Unemployment
This type of unemployment occurs when workers lose their job due to their skills and training being obsolete.
Structural Unemployment
This part of a business cycle is caused by a falling demand, which decreases supply, and slows down economic production.
Contraction
What occurred in Germany and Hungary where prices rose extremely high and fast, devastating the economy.
Hyperinflation
This tax is the United States government's largest source of revenue.
Income Tax
Interest Rates
When a country is exporting more than it imports?
Trade Surplus (Favorable Balance of Trade)
Quota
Where do most banks get the funds to give loans, make investments, and put down money in Federal Reserve branches for interest?
Deposits
This index studies the prices of a market basket of goods in order to measure inflation.
Consumer Price Index (CPI)
A significant decline in economic activity that lasts for a certain amount of time (months usually). There was a big one in 2008.
Recession
A period of rising inflation, a slowdown in productivity, and high unemployment is known as what?
Stagflation
What type of spending is used for Social Security and Medicare, which is forced by law?
Mandatory Spending
This policy combats rising inflation; tools include increasing the discount rate, selling securities, and increasing the reserve requirement.
Contractionary Policy
This is the increased interdependence among countries and interaction through trade, money, labor, communication, and technology.
Globalization
The taxes are placed on imports in order to protect domestic businesses, and sometimes to raise revenue.
Tariffs
If there is a greater possibility that a borrower will default on their loan, this will be higher: the charge for having access to money.
Interest Rate
The best indicator to use when measuring a country's prosperity for its population rather than total output.
GDP Per Capita
This period of the business cycle is where demand and productivity increase.
Expansion
What government entity is responsible for using monetary policy to combat rising inflation?
The Federal Reserve
Because a sales tax at 7% takes a larger percentage of someone with low-income compared to someone with high-income, it's what type of tax?
Regressive
To implement a contractionary policy, what would the US government do with open market securities?
Sell Bonds
Specialization
The practice of protecting a country's domestic industries from foreign competition is known as what?
Protectionism
A moral hazard is when a party lacks the incentive to protect their investments or spending choices due to being protected from consequences. Banks sometimes do this when they are bailed out. In this situation, parties are not deterred by this - the possibility of a negative outcome. Something all investors need to consider.
Risk
What type of GDP will account for inflation, thus giving the clearest picture of how the economy is doing?
Real GDP
As of August 2025, what is the U.S. unemployment rate (Closest gets the point.)
4.3
The inflation rate in June 2022 was the highest its been in 40 years. What was the rate? (Closest gets the point.)
9.1%
What type of policy is the US government participating in when they lower taxes and increase spending?
Expansionary Policy
If after months of expansionary policy, the Fed decides to no longer adjust interest rates; what stage of the business cyle are we most likely in, approaching, or have just experienced?
Peak
This type of advantage is when a country is able to produce a good at a lower opportunity cost than its competitor.
Comparative Advantage
What entity was created in Europe that established a single currency, eliminated trade barriers, and fostered cooperation and peace?
European Union
Berkshire Hathaway is the most expensive stock. What is the price per share? (Closest gets the point)
$610,086.00