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Terms
Fiscal Poliy
Unemployment and Inflation
Business Cycle
GDP
100
A tax that would charge all people an equal percentage of their income
What is proportional tax
100
The use of government taxing and spending
What is Fiscal Policy
100
To be considered unemployed a person must be
What is not working but actively seeking work
100
What phase of the business cycle are we in when GDP is increasing and unemployment is decreasing
What is Recovery or Expansion
100
The largest component of the GDP formula
What is Consumer Consumption
200
The dollar value of all final goods and services produced within a countries borders in a year
What is Gross Domestic Product
200
To expand the economy the government would
What is lower taxes and increase spending
200
What type of unemployment results when skill that workers have do not match the jobs that are available?
What is Structural Unemployment
200
Interest rates and credit fluctuations, consumer expectations, savings rates and external factors are factors that cause this
What is Business Cycle
200
GDP does not include the rubber, glass, or steel bought by an automaker to produce a car. These goods are called
What is Intermediate Goods
300
Compares current production to past production using constant prices
What is Real GDP
300
Federal individual income tax is an example of this
What is Progressive Tax Structure
300
What type of inflation occurs when the demand for goods and services exceeds the existing supply?
What is Demand Pull
300
The natural fluctuations that occur in the level of business activity.
What is the Business Cycle
300
There are two approaches to calculating GDP including the income approach and
What is Expenditure Approach
400
The type of unemployment occurring when people are between jobs or taking time off to gain more knowledge/skill
What is Frictional Unemployment
400
Spending in which the President and Congress can make choices about
What is Discretionary Spending
400
The most common method of calculating inflation
What is Consumer Price Index
400
A decrease in business activity lasting 6 months
What is a Recession
400
The expenditure formula for calculating GDP
What is C + I + G +/- NX
500
A tool used by the government to compare the current costs of a group of products to similar group of products in the past
What is Consumer Price Index (CPI)
500
Fiscal Policy with higher spending and tax cuts that encourage economic growth
What is Expansionary Policy
500
Contractionary Fiscal policy would be aimed at controlling
What is inflation rates
500
The end of a recession in the business cycle
What is Trough
500
Shows how changes in GDP are affecting the average person in an economy
What is Per Capita GDP