Basic Concepts
The study of how people use limited resources to satisfy unlimited wants.
What is Economics?
The total value of goods and services produced in a country in one year.
What is Gross Domestic Product (GDP)?
This is the paper and coin money used in everyday transactions.
What is currency?
Federal Reserve Chair
Who is Jerome Powell
The type of economy where supply and demand determine prices.
What is a market economy?
When GDP shrinks for two consecutive quarters, the economy is in this.
What is a recession?
The U.S. central bank that sets interest rates and controls the money supply.
What is the Federal Reserve?
FOMC Stands for?
The opposite of inflation, when prices fall.
What is deflation?
GDP adjusted for inflation.
What is real GDP?
The person whose face is on the $1 bill.
Who is George Washington?
What is the Fed’s main interest rate called?
What is the federal funds rate?
Goods that are used to produce other goods (like machines or tools).
What is capital?
GDP per person is called this.
What is GDP per capita?
This is the term for money kept in banks that earns interest.
What are savings?
How many times a year does the FOMC usually meet (about)?
What is 8?
The problem of limited resources and unlimited wants.
What is scarcity?
This measure looks at the economy’s output per worker.
What is productivity?
This is the interest rate charged by the Fed when lending to banks.
What is the discount rate?
What is the Monetary Policy Report?