GDP
What is macroeconomics?
The study of the economy as a whole.
What is a depression?
Someone who got fired for being continually late to work everyday (punctuality is a life skill), would be facing what type of unemployment?
Frictional
What percentage of inflation is considered healthy for the economy?
1-2%
What is liquidity?
How quickly money can be converted into something that can be used.
What indicator do we use to measure economic growth?
GDP
During what part of the business cycle would we see the unemployment rate go up?
Contraction
At what age is someone included in the labor force?
16
Why do economists dislike deflation, even if it is good for consumers?
It causes business to lose money and lead to business failures and layoffs.
Regressive
What type of GDP adjusts for inflation so that we can compare 2 different years?
Real GDP
How do we know a country is in a recession (how is it determined)?
2 or more quarters of a reduction in GDP.
Someone who works as a lifeguard during the late spring and summer is a good example of what type of employment?
Seasonal
What is stagflation?
What type of government spending can be negotiated year after year, as there is no law stating how much has to be spent?
Discretionary
How do we figure out our net exports?
Subtract imports from the exports.
When was the only depression that the United States has ever had?
The Great Depression (1930s).
Why might a 35 year old stay at home dad not be considered part of the unemployment rate?
He may not be looking for a job.
What price index is most used to study inflation?
Consumer Price Index
What is the main tool that the Fed has to reign in or control the flow of money in the economy?
Interest rates
What does it mean if a country has a negative number for its net exports?
That country has a trade deficit.
What part of the business cycle would we see the inflation rate go up?
What type of unemployment occurs because of a downturn in the economy leading to layoffs?
Cyclical
What is demand-push inflation?
When overall people are buying more goods ands spending more money, but supply hasn't caught up to demand.
What government entity is responsible for setting the U.S's monetary policy?