Economics

What is supply

The amount of a good or service producers are willing and able to sell at different prices.

What is demand?

The amount of a good or service consumers are willing and able to buy at different prices.

What generally happens to prices when demand increases but supply stays the same?

Prices tend to rise.

What generally happens to prices when supply increases but demand stays the same?

Prices tend to fall

What is inflation?

A sustained increase in the general price level of goods and services.

What is a recession?

A significant decline in economic activity spread across the economy

What is gross domestic product (GDP)?

The total market value of final goods and services produced within a country during a given period

What is a tariff?

A tax imposed on imported goods

What is an opportunity cost?

The value of the next-best alternative given up when making a choice

What is the purpose of the Federal Reserve?

To conduct monetary policy, support financial stability, supervise certain banks, and help maintain a safe payment system