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24 Cards in this Set
- Front
- Back
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CPI |
A measure of change in the prices of goods and services that consumers commonly purchase |
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The Fed |
the central bank of the United States |
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GDP |
the market value of all final goods and services produced within a nation in a given time period. |
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Aggregate Demand |
the sum of all the demand in the economy |
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aggregate supply |
the sum of all supply in the economy |
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budget deficit |
a situation in which the government spends more than it takes in |
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business cycle |
the series of growing and shrinking period of economic activity, measured by increases or decreases in real GDP |
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contraction |
a decrease in economic activity |
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cyclical unemployment |
unemployment caused by the part of the business cycle with decreased economic activity |
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depression |
an extended period of high unemployment and reduced business activity |
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economic growth |
an increase in a nations real GDP |
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expansion |
an increase in economic activity |
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fiscal policy |
the federal government's use of taxing and spending to affect the economy |
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frictional unemployment |
the temporary unemployment in which none of the unemployment is caused by decreased economic activity; generally marked by an unemployment rate of 4 to 6 percent |
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inflation |
A sustained rise in the general price level, or a sustained fall in the purchasing power of money |
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Monetary policy
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the federal reserve actions that change the money supply to influence the economy |
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National debt |
the total amount of money that the federal government owes |
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peak |
the end of an expansion in the economy |
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recession |
a prolonged economic contraction lasting two or more quarters (six months or more) |
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recovery |
a period of growth following an economic contraction or the end of a recession, where the economy as whole generally improves |
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stagflation |
a period of during which prices rise at the same time that there is a slowdown in business activity |
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structural unemployment |
unemployment that exists when the available jobs do not match the skills of available workers |
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trough |
the end of a contraction in the economy |
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zero unemployment |
an impossible phenomenon because there will always be some degree of frictional unemployment at any given time |
