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Economic Indicators
Question | Answer |
---|---|
expenditures made by households | consumption |
gross domestic product that has been adjusted for price changes | real GDP |
a measure of the price level, most widely cited | CPI |
expenditures made by the business sector | investment |
percentage of the civilain labor force that is unemployed | unemployment rate |
amount spent by the residents of other countires for goods produced in the US | export spending |
total market value of all final goods and services produced annually in a country | gross domestic product |
decrease in the price level | deflation |
increase in real GDP from one period to the next | economic growth |
increase in price level that originates on the demand side of the economy | demand side/pull inflation |
increase in price level that originated on the supply side of the economy | supply side/cost push inflation |
a slowdown in the economy marked by real GDP falling for two consecutive quarters | recession |
average number of times a dollar is spent to buy final goods and services in a year | velocity |
theory that predicts that changes in the price level will be strictly proportional to changes in the money supply | simple quantity theory of money |
an attempt to avoid or lessen a loss by taking some counterbalancing action | hedge |
recurrent swings up and down in real GDP | business cycles |
when economy experiences inflation and high unemployment at the same time | stagflation |
decrease in the money supply | contractionary monetary policy |
changes government makes in spending or taxation to acheive particular economic goals | fiscal policy |
changes the FED makes in the money supply | monetary policy |
increase in government spending or a reduction in taxes | expansionary fiscal policy |
situation in which decreases in government spending lead to increase in private spending | crowding in |
shows relationship between tax rates and tax revenues | Laffer Curve |
decrease in the money supply | contractionary monetary policy |
changes government makes in spending or taxation to acheive particular economic goals | fiscal policy |
changes the FED makes in the money supply | monetary policy |
increase in government spending or a reduction in taxes | expansionary fiscal policy |
situation in which decreases in government spending lead to increase in private spending | crowding in |
shows relationship between tax rates and tax revenues | Laffer Curve |