Understanding Economic Concepts: Unemployment, Business Cycles, and Monetary Policies

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Economics - Macroeconomics

michael1tekrzp Created by 10 mon ago

Cards in this deck(28)

What are the four types of unemployment? Provide examples for each: Cyclical, Structural, Seasonal, and _____ unemployment.

The phase of the business cycle characterized by an increase in positive economic indicators such as employment and income is called _____.

The point in the business cycle where economic indicators are at their highest and growth reaches its maximum is known as the _____.

The stage following the peak in the business cycle, where demand declines and economic indicators fall, is called _____.

The lowest point in the business cycle, where the economy experiences extensive depletion of national income, is called the _____.

The three main tools of monetary policy include open market operations, discount policy, and _____.

Gross Domestic Product (GDP) is the total market value of all final goods and services produced annually in an economy. It is calculated as expenditures equal to _____.

To calculate expenditures in an economy, you sum consumption, investment, net exports, and _____.

Income in an economy can be calculated by summing wages, interest rate, rent, and _____.

Factors that contribute to an increase in the standard of living are collectively known as _____.

A recession occurs when GDP contracts for at least two quarters, while a _____ is an extreme fall in economic activity lasting for years.

A strong U.S. dollar benefits Americans traveling overseas because $1 buys more, but it also means _____ foreign countries will purchase U.S. goods.

The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the _____.

The desired inflation rate is 2%, while the desired unemployment rate is _____.

A government policy dealing with the budget, especially taxation and borrowing, is known as _____.

The Federal Reserve's decision to print more money or withdraw money from the economy is an example of _____.

The purchase or sale of government debt by the Federal Reserve is known as _____.

The minimum interest rate set by the Federal Reserve for lending to other banks is called the _____.

The percentage of deposits that banks must hold in reserve is known as the _____.

When the government wants to slow down the economy to fight inflation, it uses a _____.

To grow the economy, the government might cut taxes or increase spending, which is known as _____.

A policy that expands the money supply and is associated with a low inflation rate is called _____.

A monetary policy that reduces the money supply and is associated with a high inflation rate is called _____.

During a peak or expansion, people investing at high interest rates are winners, while those borrowing at high interest rates are _____.

In a trough or contraction, people borrowing at low interest rates are winners, while those investing at low interest rates are _____.

An unemployment rate of zero cannot be expected because there will always be some level of _____ unemployment.

When the U.S. dollar appreciates against the Mexican peso, Americans have more _____ power.

When a steel plant moves from Chicago to Mexico, it benefits the U.S. by making goods cheaper but harms it by reducing _____.

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