Economics Module 4 Dba Answers – Flashcards
Unlock all answers in this set
Unlock answersquestion
Factors that affect gross national product:
answer
-Population -Entrepreneurism -Trade -War -Natural Resources
question
Business Cycle:
answer
Similiar to a roller coaster
question
Four Phases of a Business Cycle:
answer
-Expansion -Peak -Contraction -Trough
question
Expansion
answer
GDP is increasing
question
Peak
answer
Product reaches highest current level
question
Contraction
answer
Decreasing economic activity. Unemployment rises while inflation falls.
question
Trough
answer
Point of decline/Inbetween
question
Government Regulation:
answer
-Promotes Growth -Full Employment -Price Stability
question
Subsidies
answer
Money paid to farmers of certain commodities to supplement their income
question
Surplus
answer
Price is too high
question
Shortage
answer
Price too low
question
Board of Governors
answer
Analyzes economic data, supervises Federal Reserve Banks
question
Federal Open Market Committee
answer
Discusses economic outlook and potential adjustments to the money supply
question
Federal Reserve Banks
answer
Provides service to banks and the U.S. Treasury
question
Member Banks
answer
Receive services from regional Federal Reserve Banks
question
Depository Institutions
answer
Includes credit unions, savings and loan associations, commercial banks, and saving banks.
question
Expansionary Monetary Policy
answer
The Fed that expand or increase the money supply
question
Contractionary Monetary Policy
answer
The Fed that contract or decrease the money supply
question
Discount Rate
answer
The interest rate the Federal Reserve charges banks to borrow currency.
question
Reserve Requirment
answer
The percentage of a bank's deposits that must be kept as currency and coin in the bank.
question
Open Market Operations
answer
The Federal Reserve's frequent buying and selling of government securities (bonds), considered the most significant of the three tools.
question
Tools of Fiscal Policy:
answer
-Taxing -Spending
question
Deficit
answer
Spending more than the total tax revenue
question
Debt
answer
The total amount the government owes
question
Surplus
answer
Collecting more in taxes than is spent on programs
