EPF unit 2 Flashcards
which term is used for a government plan to reduce aggregate demand and slow the economy
contractionary
true or false real GDP accounts for inflation and nomial GDP does not account for inflation
true
which of the following categories are typically included in the CPI basket
food, housing, transportation, and healthcare
when management and labor union employees cannot reach an agreement negotiations between the two parties enter into
arbitration
what does the term business cycle refer to?
economy wide
when the Federal Reserve lowers the discount rate for commercial banks and credit unions
loans will become cheaper and the money supply will increase
Cameron came up with a cool slogan for his business that he wants to protect he would apply for a
trademark
how will rasing the interest rates affect the amount of money borrowed by a businesses and consumers
both borrow less
one way the gov can break up larger corporations is through
anti trust laws
monetray polices are set by
federal reserve
what are the three main tools or methods the federal reserve uses in implementing monetary policy
open market, disocunt, reserve requirmnets
a budget surplus will cause the national debt to
decrease
a contract may be broken by
none
what type of tax would be levied on earnings made from the sale of assets like stocks or real esate
captial gains tax
true or false nomianl GDP is always larger than real GDP
false
what type of tax system does the US utilize
progressive
fiscal policies are set by
the presdient
when a government or other entity provides financial assistance to a company or country that is about to go bankrupt
bailout
federal tax is usually imposed on the sale of things like fuel, airline, tickets
excise tax
government actions to encourage economic activity usually during a recession or economic downturn
Tax cuts and increased government fiscal policy
the items subject to this are perceived to be either morally suspect, harmful, or costly to society
sin tax
a good that can be consumed or used in production and is sold as it was found in nature
intermaide good
the act of setting aside money for a specific purpose
Appropriation
assest that are passed down after the death of the owner
estate asset
the transfer of resources like payments or tax breaks from a government to a business individual or institution without direct contribution in return
A subsidy
the total economic value of an investment assets, investments, and interests
asset value
a tax levied on the profit made from selling an asset
captial gains tax
the S and P 500 repersnets
the largest 500 forune compaines in the US
when invoking eminent domain the government is seizing property for public use what category does public use fall under
taking property to build a public school
a central bank is
nations main monetary authorty
what type of securty repsernts indvual ownership in a compmany
stocks
cureney is considerd
coins and paper money
a budget defict will cause the nationalk debt to
inc
true or false a counreys nominial GDP increases it means the country is producing more goods and services
fasle
