Quiz #6 Vocab Flashcards Preview

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Flashcards in Quiz #6 Vocab Deck (15):
0

Percentage of adult population that is working or attempting to find work

Labor force participation rate

1

Percentage of labor force currently not working but attempting to find work

Unemployment rate

2

Total number of employed and unemployed persons in an economy

Labor force

3

Rate of increase inGDP per capita (per person)

Economic growth

4

Workers unite to negotiate as one in order to increase wages and benefits
Collective bargaining

Labor unions

5

Banks take deposits, keep a fraction of it in the vault and loan out most of the rest

Fractional reserve banking

6

Central bank of the US
"The fed"
Main job: control the supply of money

US Federal Reserve

7

The actions taken by the Fed to increase or reduce the money supply

Monetary policy

8

Lower reserve requirements
Lower the discount rate
Buy treasury securities

To increase the money supply (in a recession)

9

Raise reserve requirements
Raise the discount rate
Sell treasury securities (bonds)

To reduce money supply (to prevent inflation)

10

GDP

Gross Domestic product
Value of all goods and services produced w/n a country's borders over a given time C+I+G+NX

11

CPI

Consumer Price Index
Most commonly used measure if inflation

12

A rise in the general level of prices
Helps: borrowers
Hurts: lenders, those on fixed incomes

Inflation

13

Cost of living adjustment
When fixed incomes are increased annually to allow for inflation

COLA

14

Workers who have been unable to find work and have given up as a result; not counted in the labor force or the unemployment rate

Discouraged workers