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25 Cards in this Set
- Front
- Back
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Business Cycle |
The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. A business cycle is basically defined in terms of periods of expansion or recession.
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Expansion |
expansion is the economy is growing in real terms (i.e. excluding inflation), as evidenced by increases in indicators like employment, industrial production, sales and personal incomes
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recessions |
recessions is the economy is contracting, as measured by decreases in the above indicators
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how is expansion measured? |
expansion is measured from the trough (or bottom) of the previous business cycle to the peak of the current cycle
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how is recession measured? |
recession is measured from the peak to the trough. In the United States, the National Bureau of Economic Research (NBER) determines the official dates for business cycles
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Real GDP |
real GDP is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.
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Nominal GDP |
Nominal GDP is gross domestic product (GDP) evaluated at current market prices,GDP being the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
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unemployment |
unemployment is a general increase in prices and fall in the purchasing value of money.
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monetary policy |
monetary policy is laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
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Fiscal policy |
fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.
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output growth per year 1995-2007 |
2.7% |
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U.S. inflation rate in 2011 |
3% |
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inflation rate in norway |
1.3% |
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inflation rate in kenya |
14% |
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inflation rate in argentina |
21% |
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U.S.unemployment rate in 2011 |
9.1% |
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unemployment rate in greece |
17.9% |
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unemployment rate in s korea |
3.5% |
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unemployment rate in france |
9.3% |
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modern economic growth |
Modern economic growth is -standard of living measured by output per person -no growth in living standards prior to industrial revolution -output per person rises -not experienced by all countries |
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savings include
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savings includes trade offs |
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investment includes |
investments include financial investment and economic investment |
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financial institutions |
financial institutions are an establishment that conducts financial transactions such as investments, loans and deposits. Almost everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions
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trade-off |
trade-offs are one item against another. In economics, the term trade-off is often expressed as an opportunity cost, which is the most preferred possible alternative. A trade-offinvolves a sacrifice that must be made to get a certain product or experience.
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financial investment |
financial investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit.
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