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Series65 Flashcards

1
Q

What does GDP stand for and what does it measure?

A

Gross Domestic Product: it measures the total economic output of a country.

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2
Q

What is the Consumer Price Index (CPI)?

A

An indicator of inflation that tracks the prices of a basket of consumer goods.

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3
Q

Define monetary policy.

A

Actions by the Federal Reserve to control the money supply and interest rates.

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4
Q

What are the phases of the business cycle?

A

Expansion, peak, contraction, and trough.

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5
Q

What is a leading economic indicator?

A

An indicator that predicts future economic activity, such as the stock market or manufacturing orders.

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6
Q

What is fiscal policy?

A

Government decisions on taxation and spending to influence the economy.

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7
Q

Define the unemployment rate.

A

The percentage of the labor force that is jobless and actively seeking employment.

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8
Q

What is the significance of the Federal Funds Rate?

A

It is the interest rate at which banks lend to each other overnight; a tool for implementing monetary policy.

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Series65 (1 decks)

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