Quiz #7 Vocab Flashcards Preview

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Flashcards in Quiz #7 Vocab Deck (15):
0

The government's actions with tax rates and spending

Fiscal policy

1

Reduce tax rates
Increase the level of government spending

Expansionary fiscal policy (used in a recession)

2

When the tax revenue is less than expenses
The amount must be borrowed
The national debt rises

Budget deficit

3

When tax revenue is more than expenses
The national debt falls (in theory)

Budget surplus

4

Looking for first job
In between jobs by choice

Frictional unemployment

5

Lost your job due to downturn in buisness

Cyclical unemployment

6

An individual does not have the skills that are in demand
The economy has changed such that the persons skills are obsolete

Structural unemployment

7

Demand for all goods, services, capital goods in an economy C+I+G+NX

Aggregate demand

8

Total capacity in a nation to produce goods and services; Availability of land,labor,capital, entrepreneurs and productive technology

Aggregate supply

9

Total amount of money owed by the government to bond holders

National debt

10

Low interest rates cause

More borrowing by consumers and firms
The currency to depreciate

11

High interest rates cause

Less borrowing by consumers and forms
The currency to appreciate

12

How much production is accomplished per worker
"Output per input"

Productivity

13

Expenses=revenues; debt does not change

Balanced budget

14

Government payment to a firm in order to increase their ability to compete

Subsidy