Key Economic Indicators and Concepts

Fed Funds Rate (Range)

4.25%-4.5%

Effective Fed Funds Rate

4.33%

US Unemployment

4.2%

US trade deficit

$122.7 billion

GDP to debt ratio

121.8%

Labor Force Participation Rate

62.5%

Michigan Unemployment

5.3%

Michigan Labor Force Participation rate

62.0%

Fed Discount Rate

4.5%

Federal Reserve Requirement Ratio

0%

US GDP

$29.72 trillion

Michigan GDP

$711.48 billion

Minimum wage in the US

$7.25

Minimum wage in Michigan

$10.56

Gini coefficient for US

0.47

Highest Gini coefficient

South Africa; 0.63

Lowest Gini coefficient

Slovakia; 0.24

What is PPI (1982=100)

259

What is CPI (1982=100)

319

Michigan Income Tax Rate

4.25%

U-6 unemployment rate

8%

Inflation Rate

2.8%

GDP per Capita

68,988

LFPR Teens

37.2%

U-2 Unemployment (Job Losers)

1.9%

10-year treasury rate

4.25%

30-year treasury rate

4.625%

20-year treasury rate

4.75%

5-year treasury rate

4.03%

M2

$21.575 billion

GDP growth rate

2.4%

Who is the Fed Chairman

Jerome Powell

Who is the Secretary of the Treasury (US)

Scott Bessent

Who is the Michigan State Treasurer

Rachael A. Eubanks

Largest 3 US trading partners

Mexico, Canada, China

What is M1 money supply?

All currency and money in checking accounts

What is the M2 money supply?

M1 + all savings under $100,000

What is M3 money supply?

M2 + All savings

What denominations of the US dollar are in use right now?

1,2,5,10,50,100

What was the largest denomination ever circulated?

$100,000 (Face of Woodrow Wilson)

Who is on the 1 dollar bill?

George Washington

Who is on the 2 dollar bill?

Thomas Jefferson

Who is on the 5 dollar bill?

Abraham Lincoln

Who is on the 10 dollar bill?

Alexander Hamilton

Who is on the 50 dollar bill?

Ulysses S. Grant

Who is on the 100 dollar bill?

Benjamin Franklin

How many districts are in the Fed?

12

Regional branches

Chicago, New York, San Francisco, Dallas, Boston, Philadelphia, Cleveland, Richmond, Atlanta, St. Louis, Minneapolis, Kansas City

FOMC operations

New York

Monetary policy

Federal Reserve

Fiscal policy

US Government

U1 unemployment

Anyone unemployed 15 weeks or longer

U2 unemployment

U1 + People who had recently lost a job/completed temporary work

U4 unemployment

U3 + discouraged workers

U5 unemployment

U4 + marginally attached workers

U6 unemployment

U5 + involuntary part-time workers

U3 unemployment

Official unemployment index, any and all unemployed people

Discouraged workers

Individuals who would like to work but haven't looked for a job in 4 weeks, due to economic reasons

Marginally attached workers

Individuals who would like to work, but haven't looked for a job in the past 4 weeks, for any reason

OPEC

Organization of the Petroleum Exporting Countries

Adam Smith's publication

An Inquiry into the Nature and Causes of the Wealth of Nations

Keynes's publication

The General Theory of Employment, Interest, and Money

Positive yield curve

When bond yields increase with time

Inverted yield curve

When bond yields decrease with time

Ratchet Effect

When prices tend to be sticky downward

Dodd-Frank Act (2010)

Law requires stress tests to ensure banks are running safely

Credit Default Swap

A financial contract where the buyer makes periodic payments to the seller, and in return receives a payoff if an underlying Financial instrument fails or defaults

Most recent female Nobel Prize winner for Economics

Claudia Globin

Most recent Nobel Prize winner(s) for Economics

Daron Acemoglu, Simon Johnson, James A. Robinson

Securities Act (1933)

Requires full disclosure w/ the SEC in sale/offering of securities

Securities Exchange Act (1934)

Established the SEC and regulates secondary financial markets

Trust Indenture Act (1939)

Requires a trust indenture for the sale of public bonds

Investment Advisers Act (1940)

Regulates investment advisors, requires them to register with the SEC

Sarbanes-Oxley Act (2002)

Enforces corporate accountability w/ strict reporting, auditing, and controls

JOBS Act (2012)

Eases regulations on business startups and allows crowdfunding for investment

Market Capitalization

The total value of a company's issued shares

Remittance

Money immigrants send back home

Disinflation

Fall in Inflation

Inflation

Rise in Price Level

Hyperinflation

Excessive Inflation

Sovereign Wealth Fund

State-owned investment pool, designed to diversify asset and defend against financial downturn in key industries

Past 5 chairs of the Federal Reserve Board of Governors

Jerome Powell, Janet Yellen, Ben Bernanke, Alan Greenspan, Paul A. Volcker

Lump of Labor Fallacy

Assumption that there's only a finite/fixed amount of work in the market

Moral Hazard

Lack of incentives to guard against risk, when insurance is present

Misery Index

Combination of unemployment and inflation, measurement of consumer welfare

Mercantilism

An Economic school of thought that focuses on building domestic silver and gold supplies

Crony Capitalism

When businesses thrive due to connections to a political leader not competition

Federal Forward Guidance

The Federal Reserve is telling people likely future behavior

Key components of US balance of payments

Current; Financial and Capital Account

Which 2 credit companies merged (2025)

Discover and Capital One

Doom Loop

Capital flight -> Loss of city funding -> Decreased public services -> Capital flight

Sacrifice Ratio

Loss of real GDP to decrease inflation by 1 percent

Theory of liquidity preference

People like to hold cash or more liquid assets vs bonds/stocks, which influences interest rates

Condorcet Paradox

Failure of majority rule to produce transitive preferences for society

Maxmin Criterion

The Government should maximize the well-being of the worst-off person in society

Size of the Board of Governors

7

Term length of Board of Governors

14 years

Term as Chair of the Board of Governors

4 years

Size of the Federal Open Market Committee

12

Structure of the FOMC

7 governors, NY Fed, 4 other regional heads