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Economic Indicators

QuestionAnswer
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
Created by: nrhsecovit
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