Measuring the Economy
$$ Money & Banking $$
Gov't Finances
Misc
The Business Cycle
100

What is the term for the general rise of prices

Inflation

100

The full name of the nation's central bank

The Federal Reserve Bank (or Federal Reserve Banking System)

100

Explain the difference b/w the Federal Deficit and the Federal Debt

Deficit is overspending in one Fiscal Year

Debt is the total amount we owe (total of all the deficits)

100

Explain the difference between Imports and Exports

Imports are goods brought into the country

Exports are US goods that go to other countries

100

What does the Business Cycle track / follow?

Real GDP

200

Identify 4 distinct ways to measure the health of the US Economy

Inflation

GDP

Unemployment

Stock Market

(Personal Income; Housing; etc)

200

Name the 3 "functions" of money

Medium of Exchange

Store of Value

Measure of Value (unit of account)

200

What are the two variables that Congress can control with Fiscal Policy?

Raise / Lower Taxes


Raise Lower Government Spending

200

What is the danger of Loose Money policies?

What is the danger of Tight Money policies

Inflation

Unemployment

200

How is "Real GDP" different than GDP?

Real GDP eliminates inflation

(helps to compare GDP more accurately over time)

300

Name the 4 types of Unemployment (in any order)


Frictional

Seasonal

Cyclical

Structural

300

What 3 tools does the Fed use when it engages in Monetary Policy?

Interest Rates

Reserve Requirements

Government Securities

300

What are the 3 major TYPES / CATEGORIES of taxes 

Progressive (Federal Income Tax)

Regressive (Gas Tax and Sales Tax)

Proportional (Property tax; Payroll Tax)

300

What is one way the US government attempts to protect US industries from foreign competition?

Protective tariffs

300

What is the official meaning of a Recession?

When GDP falls for 2 consecutive quarters

(6 months)

400

This measurement of the Economy was at 3.1% and increased to 3.2% according to the CPI

Inflation rate


400

What are the 3 tools the Fed would use to speed up the economy if we slipped into a recession?

Lower Interest Rates

Lower Reserve Requirements

Buy T-Bills

400

Identify examples  of 3 federal taxes and explain each one

Federal Income Tax & Corporate Income tax

Tariffs

Excise Tax

Payroll tax

Estate tax


400

What is a "Favorable Balance of Trade"

When Exports are more than Imports

(A trade Surplus)

400

What phase of the Business Cycle are we in currently and provide 2 pieces of evidence to support your answer

Expansion

- GDP is growing (latest figures were 3% growth)

- Unemployment is low (3.1% nationally)

500

__________ increased at an annual rate of 3.2 percent in the fourth quarter of 2023

Real GDP

500

Who protects individual deposits up to $250,000

"FDIC"

Federal Depositors Insurance Corporation

500

Explain the difference b/w Mandatory Spending and Discretionary Spending AND provide an example of each

Mandatory (SS; Medicare; Medicaid)

Discretionary (Military; Infrastructure; Nat'l Parks, etc)

500

Identify the 1  NC (state) taxes 

and 1 local tax

NC Sales Tax

NC State Income Tax

NC Corporate Income Tax

NC Excise tax (on gas or cigarettes)

PROPERTY Tax = Local; (also a local add-on to sales tax)

500

Some people might  say there are 6 phases to a Business Cycle (not just 4).   Draw a business cycle and label the 6 phases (starting with February 2020)

Peak;   Contraction;  Recession;  Trough

Recovery; Expansion