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Economics

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Daniella Bogan

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Cards in this guide (24)
What are the links between inflation and the economy

on increasing inflation economy growth decreases

What is a strong durable rubber

a goodyear vulcanized tire is a good example of a durable rubber

The idea that too much money in the economy causes inflation

quantity theory: Theory that too much money in the economy causes inflation.

Was inflation a big problem during the revolutionary war

Inflation was a big problem for Americans during the Revolution

Why do states pay different unemployment rates

States pay different unemployment rates because each state has a different standard of living. More expensive states (i.e. California) typically pay higher unemployment because the minimum wage is higher and there is a higher cost of living.

List two forms that technological advancement can take and give an example of each form

Technological advancement can be seen as progress within society. For example, people living better is progress. Another way you can see technological advancement is through the use of advanced devices.

What is one service the fed performs for the treasury department

It processes payments, such as Social Security checks.

What is the function of a bank examiner

to make sure the banks are obeying laws and regulations

How does an economist compare the standard of living in two different countries

by comparing real GDP per capita

What are the components of business cycle

The components of the business cycle is Prosperity, Recession, and depression.

What terms relates to money and banking

monetary policy
monetary policy

A+

What change in monetary policy could eventually cause overborrowing and overinvestment

a decrease in the money supply

How does the bureau of labor statistics determine how the market basket should change over time

by conducting a Consumer Expenditure survey

What is the proportion of saved disposable income called

Savings rate (novanet)

What is it called when banks record which account gives up mpney and which account receives money when a customer writes a check

Check Clearing

What is a prolonged economic contraction that is not especially long or severe called

A recession

In calculating the unemployment rate ''discouraged'' workers who are not actively seeking employment are

Excluded.

How do you change federal funds rate

The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.

What does a fractional reserve banking system mean

ensures growth in the economy

Globalization the development of new technology changes in consumer demand and the discovery of new resources are all causes of

structural unemployment

Which of the following statements concerning price indexes is not accurate

A Price indexes assist the government in making policy decisions

B Price indexes produce an average of prices that economists can compare to earlier averages

C Price indexes assist consumers and businesses in making economic decisions

D price indexes define the cost of goods in the entire economy at a given point in time

In drunken driving cases the police must conduct tests on suspects

fair and safe

Antitrust laws allow the U.S. government to do all of the following except .

stop firms from selling new products

Which of the following products would be used in calculating GDP

cars manufactured in Tennessee at a factory owned by a Japanese automobile company

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