Chapter 2: review

Taxing and spending policies of the government.

When the gov't spends less than it receives, it results in a deficit.

In the business cycle, ? is a pd of slow or no economic growth.

A subsidy gives financial assistance to a business or entity.

The consumer price index CPI includes real estate prices.

Demand-pull inflation occurs during which of the following business cycles?

When a few large companies dominate an industry.

Gov't tries to control the amount of money in circulation by reg interest rates & credit terms

A period of slow economic growth and high inflation.

GDP is sometimes called the "cost of living index".

CPI measures

An extended period of economic recession.

Fiscal policy is one of the tools gov't uses to ensure fair competition in the marketplace.

Policies used by government to control the supply of money and credit.

When a single seller is in control of the entire supply of a product or service.

An extended period of slow or no economic growth.

A worker who is overqualified for his or her job is an example of

A major cause of inflation is

Inflation is likely to occur when there is not enough money in circulation.

There are only 10 federal government agencies that serve and protect consumers.

Composed of people, age 16 & over, who are employed or looking for and able to work.

What is meant by a progressive tax?

Laws that ensure competition by preventing monopolies and other restraints of trade.

Gov't role in economy is limited to making laws that guarantee fair comp & fair bsns practices

Composed of workers who unite to negotiate w/ employers over issues such as pay, health care,

When companies in an oligopoly make secret agreements to shut out competition they R engaged in

Which of the following Federal Reserve actions would help control inflation?

When the GDP declines for two or more quarters, the economy is said to be in

Which of the following Federal Reserve actions would help ease a recession?

When the Federal Reserve follows a "tight" monetary policy, money &credit are readily available