Series65 Flashcards
What does GDP stand for and what does it measure?
Gross Domestic Product: it measures the total economic output of a country.
What is the Consumer Price Index (CPI)?
An indicator of inflation that tracks the prices of a basket of consumer goods.
Define monetary policy.
Actions by the Federal Reserve to control the money supply and interest rates.
What are the phases of the business cycle?
Expansion, peak, contraction, and trough.
What is a leading economic indicator?
An indicator that predicts future economic activity, such as the stock market or manufacturing orders.
What is fiscal policy?
Government decisions on taxation and spending to influence the economy.
Define the unemployment rate.
The percentage of the labor force that is jobless and actively seeking employment.
What is the significance of the Federal Funds Rate?
It is the interest rate at which banks lend to each other overnight; a tool for implementing monetary policy.