GDP
The dollar value of all goods and services produced within a country in one year is...
GDP (Gross domestic product)
The percentage of people in the labor force who want a job but are currently not working makes up the
Unemployment rate
A rise in general price levels over time is called
Inflation
Fiscal policy is actions taken by ________ to stabilize the economy
Congress/LAWMAKERS
A federal program that requires payments to any eligible person or unit of government is called a/an
Entitlement (ex: Social Security)
What goods are NOT included in GDP?
Intermediate goods, nonproduction transactions, nonmarket/illegal activities
This type of unemployment is directly related to shifts in the business cycle:
Cyclical unemployment
The percentage change in prices from year to year is the
Inflation Rate
What are the "tools" of fiscal policy?
Government spending and taxes
The most commonly used measure of economic growth in a country is
Real GDP
The best measure of a nation's standard of living is
real GDP per capita
Changes in technology are most associated with which type of unemployment?
Structural unemployment
To calculate the change in prices from year to year, the Consumer Price Index measures the change in the total cost of the...
(Hint it's 2 words and it is another way to say sample)
Market Basket
Contractionary= laws aimed at reducing inflation
Expansionary=laws aimed at reducing unemployment
A 6-month period of declining Real GDP is called a/an
Recession
T/F: A decrease in factor productivity could result in economic growth
False
When an economy is at the natural rate of unemployment, what type(s) of unemployment are present?
Frictional & Structural
Who is hurt when unanticipated inflation occurs?
Savers with interest baring accounts that do not keep up with inflation rates
Monetary policy is actions taken by ________ to stabilize the economy.
The Federal Reserve Bank
*tools are discount rate, reserve requirement, and open market operations*
In what order do the phases of the business cycle flow?
Expansion, Peak, Contraction, Trough
What are the 3 economic goals of all countries?
promote economic growth, limit unemployment, keep prices stable (limit unemployment)
What are the 3 different types of unemployment?
Frictional, Structural, Cyclical
what color am i thinking of
yes
What is the relationship between deficit spending and national debt?
Deficit spending CONTRIBUTES to the national debt.
*Deficit spending occurs when annual gov. spending and transfer payments are greater than tax revenue.
Who is the coolest student teacher ever?
Mr.Hammond