Causes of the Business Cycle
Changes in the supply of this is a major cause of business cycles occurring
What is money supply?
The point on a business cycle graph where economic decline stops is...
When financial experts look at a number of goods to see if any price changes are present. The goods are placed in a...
What is market basket
Two tools of fiscal policy
Taxation and spending
Largest part of GDP which includes places like retail stores.
Consumer Spending
This is used for financial transactions and can be used as a store of value, medium of exchange, or a measurement of value.
Money
One of the reason of the business cycle might be caused by elected officials seeking reelection
What is politics?
The point on a business cycle graph where economic growth stops is...
What is a peak?
Social and economic goal aimed at limiting inflation to keep prices steady
What is price stability?
When the Federal government spends more money than it has, this causes a....
What is a budget deficit?
GDP adjusted for inflation
real GDP
When you add consumer, government, and investment spending with net exports you get....
GDP
a war can cause this and it will greatly effect the economy
What is supply shock?
The area on a business cycle graph where GDP and employment increase is...
What is a recovery/expansion?
Social and Economic Goal aimed at keeping the unemployment rate as low as possible.
Full Employment
When the government receives more in taxes than it spends, this causes a...
What is a budget surplus?
Part of GDP that involves Federal, State, and local branches spending money
Government spending
The point on a graph where aggregate supply and demand meet is...
Equilibrium
The Federal Government announces a tax hike, this in turn makes business's _________________________ less. Therefore greatly harming the economy.
What is invest
The area on a business cycle where GDP decreases and unemployment increases would be....
What is a contraction?
This is the cycle that looks like a roller coaster that helps us understand economics
What is the Business Cycle
People who lose from unanticipated inflation?
Who are lenders?
Part of GDP where businesses spend on productive resources
Investment spending
An organization that is made of three branches: the Federal Open Market Committee, Board of Governors, and the District Banks
Federal Reserve
Computers and other technologies are ______________________ that can help increase economic output
What is innovation?
What do you call a downturn or bad time in the economy?
What is a recession or depression?
This type of inflation occurs often at the holiday's and is driven by consumers
demand side inflation
People who gain from unanticipated inflation?
Borrowers
Part of GDP that involves international trade
net exports
CPI stands for?
what is CONSUMER PRICE INDEX