EPF Chp 19 #Government & the Economy

Consumer Price Index includes changes in real estate prices & taxes

Deflation is period of declining prices.

Which of the following is most important to labor unions when negotiating with employers?

Demand-pull inflation occurs during recovery and peak periods in the business cycle.

______________ is especially hard on people who have a fixed income because costs increase.

The ________ is the interest rate The Fed charges commercial banks for credit when they borrow.

Unemployment tied to the business cycle

Economists use economic ______________ to evaluate the overall health of the economy.

Why does demand-pull inflation occur?

Between 2007 - 2009, the US economy experienced the _____________, which had long-term effects.

The labor force is made of people, 15 & over, who are employed or looking for & able to work.

A recession exists if negative growth lasts two years or more.

Each part of the business cycle lasts no more than a few weeks.

When a recession goes on for several years

A(n) ___________occurs when a period of slow or no economic growth goes on for years?

The amount the federal government spends each year beyond the amount it receives in revenues.

An opportunity cost remains the same regardless of who makes the decision.

A group of workers united to negotiate with employers concerning issues working conditions.

Occurs at the height of the growth period and lasts until growth begins to slow

A Recession is an extended period of slow or no economic growth.

A period of slow growth and high inflation is ____.

Long-term unemployment that is most damaging to workers & the economy

Charts the ups & downs of consumer prices for goods and services

A secret agreement among companies to shut out smaller competitors & to engage in price fixing

A condition in which workers are employed only part time or are overqualified for their jobs

Government spending of tax revenues creates demand for goods and services.

The gross domestic product is calculated annually and expressed as an annual rate.

The CPI measures annual price changes of goods/services against the prices for previous year.

A period when business activity is growing

The consumer price index is sometimes called the ______________________________ index

Composed of people, 16 & over who are employed or looking for work

Which tool is not used by the Federal Reserve Board to manage the supply of money and credit?

refers to the Fed’s buying or selling of treasury securities in the marketplace

The "Fed" will increase the discount rate during a recession to help boost the economy.

The percentage of the labor force that is out of work and seeking employment is the

Extended deflationary periods can lead to an economic

Long-term unemployment that causes damage to the economy is ____.

Short-term unemployment that affects people who are between jobs is ____.

______ is a when no single seller significantly influences the market prices

An economic indicator is a piece of significant economic data.

When prices continue to fall, consumers/businesses postpone spending, waiting for lower prices.

The economy fluctuates in the United States, but remains steady in other industrial nations.

The Fed mandates the size of the cash reserve that financial institutions must keep.

The principal goal of subsides is to benefit the public

An overall increase in the price of goods and services

Which of the following markers is not true during a recession?

payment that gives financial assistance to business or entity: education, ag, the arts, etc

The Business Cycle is related to the Economy

A system that regulates the nation’s money supply and the banking system.