Fiscal policy= is the use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions
Deficit= earn less than spend
Surplus= earning more than spending
Balance budget = spending exactly what you earned
I come tax= payment made by individuals and corporations to a government entity based on their taxable income
Monetary policy= refers to actions central banks take to pursue objectives such as price stability and maximum unemployment
Cynical unemployment= unemployment closely tied to the business cycle, like higher unemployment during a recession
Frictional unemployment= unemployment that occurs as workers move between jobs
Structural unemployment= unemployment that occurs because individuals lack skills valued by employers
macroeconomics= focuses on the economy as a whole. It describes what causes recessions and what makes unemployment stay high.
GDP=It is the value of all final goods and services produced within a country in a given year. A final good or services at their furthest stage of production at the end of the year.
The formula is Gross Domestic Product = Consumer Spending + Investor Spending + Government Spending + (Exports - Imports)
Inflation=a general rise in the prices of goods and services in the economy.
Inefficient Production = inside the curve | outside the curve
Efficient Production = inside the curve | outside the curve | on the curve| Unattainable Production = inside the curve |
| on the curve |
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