Vocab Flashcards
Great Depression
The result of unregulated Free Market
New Deal
Government Jobs created by FDR with the intent of “jump starting’ the depression economy through a Demand shift.
Federal Reserve
it controls the baseline interest rate of all banks in America
Monetary Policy
Actions of the Federal Reserve Board to raise or lower interest rates in order to affect real GDP
Required Reserves
amount that Banks are required to keep on hand in case of a “run” on the banks
Fiscal Policy
Actions of the Executive and Legislative branches to affect real GDP through taxing and spending policie
Supply Side Economics
by lowering taxes on corporations, government can stimulate investment in industry and thereby raise production, which will, in turn, bring down prices and control inflation
Outsourcing
business practice used by companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes
Nominal GDP
Dollar Value of all goods and services produced in a country during one year
Real GDP
Real” amount that production increased or decreased in a country in a year when adjusted for inflation
Consumer Price Index
the amount of increase or decrease of the value of a market basket of goods in any given year
Aggregate Demand
the total demand for goods and services within a particular market
Aggregate Supply
the total supply of goods and services available to a particular market from producers
Janet Yellen
American economist. Chair of the Board of Governors of the Federal Reserve System.
