Macroeconomics Flashcards
Gross domestic product, the amount of goods and services a country produce in 1 yr (15 cards)
GDP
Gross domestic product, measures the total value of goods & services a country produces in 1 year
GDP per capita
a measure of a country’s economic output that accounts for its number of people
Price Inflation
A term used to describe the rise of prices for goods & services in an economy, inflation is calculated using the CPI
CPI
Consumer price index, measures the average change over time for the price of goods & service in urban areas, example transportation, healthcare
BLS
U.S Burea of labor & statistics, the entity that measures CPI
US Unemployment
Unemployment rate 3.9% according to BLS,Gov use Fiscal & monetary policies to regulate unemployment
Fiscal Policy
Fiscal policy is to reduce unemployment, this is done by increasing gov spending or decrease taxes
Corporate tax
Is a direct tax imposed by jurisdiction on the income of corporations, the U.S tax rate is 21%
Payroll Tax
Taxes deducted from an employee, taxes paid by an employer, social security 12.4%, medicare 2.9%
Individual tax
Tax paid on an individual’s personal income as distinct as tax paid on firm
Monetary Policy
Consist of action of a central bank (federal Reserve) that determins the size and rate of growth of the money supply which affects interest rate.
Printing money
Gov use monetary & Fiscal tax to print money, use federal reserve
FRS
Federal reserve system the U.S central bank, manages the economy’s money supply
International trade
The exchange of goods and services between countries, Bill Clinton (North amercan free trade agreement)
What are the 4 factors of production
Land, labor, capital, and entrepeneurship
