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13 Cards in this Set
- Front
- Back
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BUSINESS CYCLE recovery or expansion phase |
- central banks increase the amount of loans - more money available - businesses increase production - more jobs available - unemployment rate falls |
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BUSINESS CYCLE peak |
- only known after a peak occurs - highest level of expansion stage - takes place in final month of expansion - occurs before retail sales and employment rate falls |
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BUSINESS CYCLE contraction |
- opposite of expansion phase - businesses decrease production - less jobs available - unemployment rate rises - less money to purchase things |
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BUSINESS CYCLE trough |
- opposite of peak - known after trough finishes - lowest level of contraction phase - occurs before retail sales and employment rate rises |
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economic growth rate target |
3% |
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inflation rate target |
2-3% |
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unemployment rate target |
5% (full employment) |
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participation rate target |
higher the better |
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productivity growth rate target |
higher the better |
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gini coefficient target |
lower the better |
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what does HDI measure? |
life expectancy, education, average income in an area |
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fiscal policy |
the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy |
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monetary policy |
the process by which the monetary authority of a country (central bank) controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency |
