Economic Policy Tools: Fiscal, Monetary, and Taxation Approaches to Managing Economies

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Economics - Macroeconomics

jake12testoswi Created by 10 mon ago

Cards in this deck(38)

What is the tax levied on the income of a business or corporation called?

Which institution is responsible for conducting monetary and exchange rate policy, regulating commercial banks, and providing banking services to the government?

What is the measure of the degree of optimism that households have about their income and economic prospects?

What index measures the average of the prices of goods and services that the typical consumer buys, used as a measure of the cost of living and to calculate inflation?

What is the term for a decrease in government expenditures and/or an increase in taxes aimed at decreasing aggregate demand and reducing inflationary pressures?

What policy involves an increase in interest rates by the central bank to decrease aggregate demand and inflationary pressures, also known as tight monetary policy?

What type of inflation results from increased production costs, such as rising wages or commodity prices, and is illustrated by a leftward shift of the SRAS curve?

What is the term for a sustained decrease in the average price level of a country?

What is the term for when the equilibrium level of real output is less than potential output due to a decrease in aggregate demand?

What type of inflation is caused by increases in aggregate demand?

What is the term for when the average price level continues to rise but at a slower rate, resulting in a positive but lower rate of inflation?

What is the term for an increase in government expenditures and/or a decrease in taxes aimed at increasing aggregate demand, real output, and employment?

What is the monetary policy that aims at increasing aggregate demand through a decrease in interest rates, also known as easy monetary policy?

What is the demand-side policy that uses changes in government spending and/or direct taxation to influence aggregate demand, growth, employment, and prices?

What type of unemployment occurs when individuals are in between jobs, as people quit to find a better job or move to a different location?

What is the sum of all past budget deficits minus any budget surpluses, representing the total amount the government owes to domestic and foreign creditors?

What term describes all spending by the government, distinguished into current expenditures, capital expenditures, and transfer payments?

What is the value of all final goods and services produced within an economy over a period of time, usually a year or a quarter?

What is the term for a sustained increase in the average level of prices?

What is the term for when equilibrium real output exceeds potential output due to an increase in aggregate demand?

What is the cost of borrowing money or the reward for saving money over a period of time, expressed as a percentage?

What is a type of price floor where the wage rate or the price of labour is set above the market equilibrium wage rate?

What is the demand-side policy that uses changes in the money supply or interest rates to achieve economic objectives related to output, employment, and inflation?

What is the income earned by the factors of production of an economy, equal to wages plus interest, plus rents, plus profits?

What are interest rates that have not been adjusted for inflation called?

What is the next best alternative foregone when an economic decision is made?

What is the total value of all final goods and services produced in an economy in a given time period, usually one year, adjusted for inflation?

What type of unemployment arises when people are out of work because their usual job is out of season, such as agricultural workers during winter months?

What term describes an individual or group of individuals who have an interest, or stake, in an economic activity or outcome?

What kind of long-term unemployment arises from factors such as technological change, changes in demand for different labour skills, and labour market rigidities?

What are government policies designed to shift the long-run aggregate supply curve to the right, thus increasing potential output in the economy and achieving economic growth?

What is the term for when a person (who is above a specified age and is available to work) is actively looking for work but is without a job?

What is the number of unemployed workers expressed as a percentage of the total workforce?

What is the term for a decrease in investment that results from government borrowing?

What type of unemployment is a result of a decrease in aggregate demand and thus of economic activity, occurring in a recession?

What is the income earned by all national factors of production independently of where they are located over a period of time?

What is the idea that an increase in any injection will lead to a greater increase in real GDP or national income because an increase in spending generates additional income that leads to further spending?

What is the term for when real GDP falls for two consecutive quarters?

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Economic Policy Tools: Fiscal, Monetary, and Taxation Approaches to Managing Economies

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