Lesson 9 Quiz Questions Flashcards
Macroeconomics
The study of economic factors that are reflective of the entire economy, such as gross domestic product (GDP), inflation rate, interest rate, or unemployment rate
Microeconomics
The study of factors that impact small or individual economies, such as supply and demand for a product
Gross Domestic Product (GDP)
Measures the total output of a country over a period of time; goods and services produced from the labor and capital located within a country’s borders.
Gross National Product (GNP)
Measures the economic output of a country’s citizens - whether that output is produced domestically or in a foreign country
Inflation
Represents an increase in the price of goods and services in an economy over a period of time without a respective increase in productivity
Deflation
Occurs when the inflation rate is negative
Disinflation
Occurs when the inflation rate drops from one year to the next
Discouraged Workers
Individuals who are ready and willing to work, but have given up looking for or applying to jobs
Marginally Attached Workers
Include discouraged workers and also individuals who are available to work, want to work, and have looked for a job within the past 12 months (but not the four weeks prior to survey)
Underemployed Workers
Individuals who are technically overqualified for their current positions and are working in part-time positions
Expansion Phase Indicators
- GDP Increasing
- Inflation Increasing
- Interest Rates Increasing
- Employment Increasing
Peak Phase Indicators
- GDP High
- Inflation High
- Interest Rates High
- Employment High
Contraction Phase Indicators
- GDP Decreasing
- Inflation Decreasing
- Interest Rates Decreasing
- Employment Decreasing
Trough Phase Indicators
- GDP Low
- Inflation Low
- Interest Rates Low
- Employment Low
Lagging Economic Indicators
- Average duration of unemployment
- Ratio of manufacturing and trade inventories to sales
- Ratio of consumer credit outstanding to personal income
Coincident Economic Indicators
- Number of employees on non-agricultural payrolls
- Index of industrial production
Leading Economic Indicators
- Average workweek of production workers
- Building Permits
- Stock Prices
Monetary Policy
Represents the intended influence on the money supply and interest rates by the Federal Reserve
Three primary goals of the Fed
- Maintain price levels
- Maintain full employment
- Facilitate long-term economic growth
Four tools of the Fed
- Reserve Requirement
- Interest on Reserves
- Discount Rate
- Open Market Operations
Fiscal Policy
Congress sets by changing tax and government spending policies
Chapter 7 Bankruptcy
For wage earners to discharge debts by liquidation
Chapter 11 Bankruptcy
For companies to reorganize and adjust debts
Chapter 13 Bankruptcy
For wage earners to repay a portion of debts with income over the next 36 to 60 months
