Jargon 2 Flashcards
The present discounted value of future cash stream generated by a bond
Bond prices
The amount of return an investor realizes on a bond
“Profit”
Bond yields
The amount by which the government expenditures exceed its receipts during a specific period of time, usually a year
Budget deficit
An excess of government revenues over government expenditures in a given period
Budget surplus
Federal agency trusted with printing currency in the US
Bureau of printing and engraving
Alternating periods of economic growth and retraction
Business cycle
The amounts of all products available to sell to other businesses or a consumer
Business inventories
A bank for all banks. America’s is the federal reserve system
Most important function of the Federal Reserve is to conduct monetary policy for the US
Central bank
a federal agency within the legislative branch of the government that provides budget and economic information to congress
The Congressional budget office
Money in advance to customers to purchase goods or services
Consumer credit
Deliberate changes in government spending and net tax collection to affect economic output, unemployment, and the price level
Expansionary and contradictory fiscal policy
Changes in the money supply to fight recessions or inflation directly and purposefully affects interest rates
Contractionary/expansionary monetary policy
And agency within the executive office of the US that advises the president on economic policy. Provides much of the objective empirical research for the White House
Council of economic advisers
A measure of changes in the average price of consumer goods and services
CPI
An explicit, legislated limit on the amount of outstanding national debt
Debt ceiling
Elements of the federal budget not determined by past legislative or executive commitments
Discretionary spending
After-tax income of households
personal income - personal taxes
Disposable income
Non-discretionary spending on programs such as Social Security, Medicare, food stamps, unemployment insurance, etc.
Entitlements
Government corporation providing insurance to depositors in US banks, ensures them up to $250,000
Federal depositors insurance Corporation
The interest rate for interbank reserve loans
Federal funds rate
A tax levied by the United States internal revenue service on the annual earnings of individuals, corporations, trusts and other legal entities
Federal income tax
A committee of the federal reserve board that meets regularly to set monetary policy, including the interest rates that are charged to banks
Federal open market committee
The central bank for the United States, trusted with conducting monetary policy in this country
Federal reserve bank
The value of total market output produced at full employment
Full employment GDP
Outlays by the public sector on goods and services
Government expenditures
The total market value of all final goods and services produced within a nation’s borders in a given time period
Gross domestic product
The price paid for the use of money
Interest rates
Job openings and labor turnover survey
It is like the inside out version of the unemployment rate
Jolts
Where AS and AD intersect
not to be confused with long run equilibrium
Macroeconomic equilibrium
Anything generally excepted as a medium of exchange
Money
Currency held by the public, plus balances in transaction accounts, plus balances in most saving accounts in money market funds
Money supply
Long term rate of unemployment determined by structural forces in labor and product markets
Natural rate of unemployment
Serves the president of the United States in overseeing the implementation of his vision across the executive branch
Office of management and budget
An amount of money spent on something
expenditures by government that could be on goods and services or on transfer payments
Outlays
Taxes imposed on employers or employees and are usually calculated as a percentage of the salaries that employers pay their staff
Payroll tax
Income received by households before payment of personal taxes
Personal income
The lowest rate of interest at which money may be borrowed commercially
Prime rate
A tax system in which tax rates rise as income rises
Progressive tax
A tax that levies the same rate on every dollar of income
Proportional tax
A tax system in which tax rates fall as income rises
Regressive tax
Debt owed by a central government
Public debt
The nominal interest rate minus the anticipated inflation rate
Real interest rate
The amount of money a firm receives in the course of doing business
Revenue
The part of disposable income not spent on current consumption
disposable income minus consumption
Savings
Signifies ownership in a corporation and represents a claim on part of that corporations assets and earnings
stocks, bonds, and mutual funds
Securities
Making interest payments on a debt, usually used when talking of government or firms
Servicing the debt
The name given to government programs designed to prevent or shorten recessions and to counteract inflation
Stabilization policy
The stimulus occurrence of substantial unemployment or inflation
Stagflation
A compulsory contribution to state revenue, levied by the government on workers income and business profits were added to the cost of some goods, services, and transactions
Taxes
Exports minus imports
Trade balance
Payments to individuals for which no current goods or services are exchanged, like Social Security, welfare, and unemployment benefits
Transfer payments
The number of people in the labor force that are unemployed. Unemployed divided by labor force
Unemployment rate
