Econ Test Flashcards
Income
Money that an individual or business receives in exchange for providing a good or service or through investing capital
Inflation
rise in the general level of prices
Expansion
period of uninterrupted growth of real GDP; recovery from recession
National Debt
the total amount borrowed from investors to finance the government’s deficit spending
Stag Flation
combination of stagnant economic growth and inflation
Consumer Price Index
used to measure price changes for a market basket of frequently used consumer items
Aggregate Supply
total value of all goods & services that all firms would produce in a specific period of time at various price levels
GDP
dollar value of all final goods,services, & structures produced within a country’s national borders during a 1yr period
Government Deficit
the amount by which government spending is more than the money it recieves
Monetary Policy
actions by the Federal Reserve System to expand or contract the money supply in order to affect the cost & availability of credit
Federal Reserve
privately owned, publicly controlled, central bank of the U.S.
Reserve Requirement
formula used to compute the amount of a depository institutions required reserves
Federal Funds Rate
the interest rate at which depository institutions actively trade balances held at federal reserve with each other, overnight, on an uncollaterized basis
Full Employment
virtually all who are able and willing to work are employed
Open Market Operation
monetary policy in the form of U.S. treasury bills/bond sales and purchases or both
