Quiz #6 Vocab Flashcards
Percentage of labor force currently not working but attempting to find work
Unemployment rate
Percentage of adult population that is working or attempting to find work
Labor force participation rate
Total number of employed and unemployed persons in an economy
Labor force
Rate of increase inGDP per capita (per person)
Economic growth
Workers unite to negotiate as one in order to increase wages and benefits
Collective bargaining
Labor unions
Banks take deposits, keep a fraction of it in the vault and loan out most of the rest
Fractional reserve banking
Central bank of the US
“The fed”
Main job: control the supply of money
US Federal Reserve
The actions taken by the Fed to increase or reduce the money supply
Monetary policy
Lower reserve requirements
Lower the discount rate
Buy treasury securities
To increase the money supply (in a recession)
Raise reserve requirements
Raise the discount rate
Sell treasury securities (bonds)
To reduce money supply (to prevent inflation)
GDP
Gross Domestic product
Value of all goods and services produced w/n a country’s borders over a given time C+I+G+NX
CPI
Consumer Price Index
Most commonly used measure if inflation
A rise in the general level of prices
Helps: borrowers
Hurts: lenders, those on fixed incomes
Inflation
Cost of living adjustment
When fixed incomes are increased annually to allow for inflation
COLA
Workers who have been unable to find work and have given up as a result; not counted in the labor force or the unemployment rate
Discouraged workers
