macroeconomic concepts – Flashcards
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aggregate demand
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This is the total amount of goods and services consumers are willing to buy.
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aggregate supply
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the total supply of all the goods and services available in an economy
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boycott
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This is a form of protest by voluntarily not using, purchasing or dealing with a person or organization.
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business cycle
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This refers to the changes in economic activity of a company over the long term.
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central bank
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This is a financial institution responsible for the monetary policy of a country.
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consumer price index
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This is an economic measure of inflation in the domestic economy, and is determined by tracking the prices of a specific set of goods and services purchased by the public.
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cyclical unemployment
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Unemployment that is caused by a downturn in the business cycle
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depression
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a prolonged period with large numbers of unemployed, declining incomes, and general economic hardship
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fdic
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This was a federally sponsored corporation which insures deposits in national banks and certain other qualifying financial institutions up to a stated amount.
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federal budget
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This is a document that outlines the funding recommendations for the next fiscal year.
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federal reserve system
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This is the central bank of the United States
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fiscal policy
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the government program of spending and taxation to promote desired economic goals for the nation
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frictional unemployment
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unemployment caused by people changing jobs
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government deficit
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This occurs when an organization spends more money than it takes in.
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gross domestic product
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the total value of all the goods and services produced within a country in a given year
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gross national product
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This is the total value of all final goods and services produced and sold by a country.
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inflation
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a rise in the general level of prices
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labor union
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This is an organization of workers that negotiates with employers for better pay, benefits, and working conditions.
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monetary policy
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a plan of the government to regulate the money supply in the nation
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monetary standard
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This is the basis of a national economic system. It may be a fixed amount of a precious metal for each $1.
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money
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This is the legally accepted payment for goods and services
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national debt
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the total amount of money a nation owes its creditors
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peak
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the point in a business cycle when production, employment, and wages are at their highest
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recession
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This is a decline in a country's GDP for two or more successive quarters. It is usually characterized by a significant decline in economic activity.
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reserve requirement
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This is the percentage of their deposits that member banks must keep available in a Federal Reserve Bank.
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stagflation
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This is a period of large price inflation combined with no output growth, increasing unemployment, and a recession.
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standard of living
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This is the term used to describe the general way in which people live, focusing primarily on things like average income, health care availability, life expectancy, educational attainment, etc.
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strike
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an organized work stoppage by employees or union members
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structional unemployment
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unemployment that is caused by changes in technology or reduced demand for certain products
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trough
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the lowest point in a business cycle; demand, production, and wages are at their lowest level
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unemployment
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This is the lack of jobs for willing workers
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wage rate
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This is the compensation workers receive in exchange for their labor per unit time
