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25 Cards in this Set
- Front
- Back
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GDP
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total dollar value of all FINAL goods and services produced in a nation during one year
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categories
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Consumer Goods and Services (ex. cars and haircuts)
Business Goods and Services (ex. machines and tools) Government Goods and Services (ex. jet planes and paper clips) Net Exports |
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inflation
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prolonged rise in the general price level of goods and services
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consumer price index
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compares the cost of a standard "basket" of goods from year to year
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expansion
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growth
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peak
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boom
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contraction
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recession
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trough
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bottom
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depression
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recession is prolonged and severe, coined by Hoover
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loose money policy
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fed increases money supply
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tools of fed
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Change the Reserve Requirement
Change the Discount Rate Open-Market Operations |
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discount rate
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nterest rate the banks have to pay on loan from fed
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Open Market Operations
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selling of treasury bills
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absolute advantage
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better at everything
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comparative advantage
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lower opportunity cost for producing one product over another
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market economy
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individuals own and operate the factors of production, capitalism, free enterprise
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market economy examples
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United States
Great Britain Japan |
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command economy
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government owns and operates the factors of production, socialism, communism
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command economy examples
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Cuba
China Laos |
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traditional economy
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based upon customs and traditions, Economy is based upon agriculture and hunting, agrarian, non-industrialized
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traditional economy examples
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Chad
Haiti Rwanda |
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mixed economy
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has features of both market and command economies
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mixed economy examples
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US
China |
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capitalism
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people own things, economy follows supply and demand
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socialism
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no private property, government responsible for economy
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