Studied by 20 people
Bond
a financial asset in the form of a written I.O.U
Budget Deficit
government spending exceeds tax revenue
Budget Surplus
tax revenue exceeds government spending
Capital stock
inventory of physical capital
Crowding Out
government deficit spending increases, interest rates increase, investment decreases
Cyclical Unemployment
caused by recession
Discount Rate
interest rate the Federal Reserve charges banks for loans
Discouraged Worker
someone who can’t find work, stops looking, and therefore is no longer unemployed
Disposable Income
total income minus taxes, income available to spend
Economic Growth
an increase in the maximum output
Economics
the study of how society satisfies unlimited wants with limited resources
Federal Funds Rate
interest rate banks charge other banks on overnight loans
Federal Reserve
central bank
Fiat Money
value derived from the word of the government and the fact it is accepted
Fiscal Policy
government spending and taxation used to stabilize the economy
Frictional Unemployment
related to time spent searching for a job
Gross Domestic Product
the total value of all final goods and services produced within a country in a year
Human Capital
education and training provided to increase productivity
Inflation
increase in overall price levels
Interest Rate
the cost of borrowing money or the rate of return on financial assets
Investment
business spending on physical capital
Macroeconomics
studying the economy as a whole
Microeconomics
studying individual aspects of the economy
Monetary Policy
the changing of the money supply by the Federal reserve in attempt to stabilize the economy
Net Exports
exports minus imports
Open Market Operations
the buying and selling of government bonds by the Federal Reserve
Opportunity Cost
the next best thing given up while making an economic decision
Physical Capital
tools, machines, and buildings used to produce other goods and services
Productivity
output per input
Recession
an economic downturn with an increase in unemployment
Stagflation
a combination of rising inflation and rising unemployment
Structural Unemployment
more job seekers than jobs available often due to outdated skills
Unemployment Rate
percentage of the labor force that is looking for work but unable to find it
Velocity Of Money
the number of times a dollar is spent in a year
Note 
Flashcard (83)