Economic Concepts/Systems
This type of economy has the government commands (or directs) what will happen in the economy
What is Command Economy
When a government makes more than it spends over a period of a year
What is Surplus
What is the formula for Aggergate Demand
What is AD = C+I+G+(X-M)
What are the 4 Stages in the Business Cycle
What is Peak/Boom, Recession, Trough/Slump and Recovery
Canada's Central Bank
What is the Bank of Canada
this type of economy has a mixture of private and public ownership
What is Mixed Economy
The accumulation of annual government deficits
What market is known for currency exchange
If consumers are _________ in the economy, they will invest into our economy
What is Business or Consumer Confidence
This type of inflation is caused by an increase in the demand for goods and services.
What is Demand-Pull Inflation
What are resources used in the production process called?
What policy is known for expanding or boosting the spending in the economy
What is Expansionary Policy
The total spending by households on goods and services in an economy
What is Consumer Spending
What usually happens when an economy is in recovery?
What is GDP grows, Incomes Rise, and Unemployment Falls
The reward for saving OR the cost of borrowing money
What is Interest Rate
The basic economic problem that there are limited resources to satisfy unlimited wants and needs.
What is Scarcity
What Policy is this:
The Bank of Canada increases or decreases the interest rates in order to increase or decrease total spending by businesses and consumers in the Canadian economy
What is Monetary Policy
The term used to describe compulsory payments to the government
What is Taxation
What is Recession
The amount of money you have and how much goods and services that money can buy
What is Purchasing Power
Adam Smith's concept that individuals pursuing their own self-interest in a free market economy tend to promote the good of the community as a whole, even though this isn't their intention.
What is Invisible Hand
What Policy is this:
The use of government taxing and spending powers to affect the behaviour of the economy
What is Fiscal Policy
What economic model describes describes the circulation of money and real flows between businesses, consumers, governments and foreign countries.
What is the Circular Flow of Income
This term describes how much and how quickly prices move over a given span of time, mainly used in the Stock Market
What is Volatility
This measure of inflation measures the average price of consumer goods and services purchased by households on a yearly basis
What is Consumer Price Index (CPI)