Term
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Definition
- Not completely accurate
- Does not account for products in foreign countries
- You don't get money from foreign companies
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Term
| Effects of inflation on consumers |
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Definition
- Purchasing power
- income
- interest rates
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Term
| Effects of inflation on businesses |
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Definition
- Purchasing power
- income
- interest rates
- Businesses pay more money for supplies
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Term
| Cause of inflation - Demand pull |
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Definition
| Inflation occurs when demand for goods and services exceeds supply |
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Term
| Cause if inflation - Cost push |
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Definition
| Producers increase prices to meet increased costs |
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Term
| Fiscal Policy - expansionary options |
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Definition
- Decreased taxes
- Increase government spending
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Term
| Fiscal Policy - contractionary options |
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Definition
- Decrease government spending
- Increase taxes
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Term
Money
- Money as a medium of exchange
- Money as a Unit of Account
- Money as a store of value
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Definition
- Anything that is used to determine value during the exchange of goods and services
- Money provides a means for comparing the values and services
Money keeps its value if you decide to hold on to it
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Term
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Definition
| People need to be able to take money with them as they go about their daily business |
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Term
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Definition
| Everyone in an economy must be able to exchange the objects that serve as money for goods and services |
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Term
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Definition
| Goods that are no longer in limited supply are no longer useful as currency |
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Term
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Definition
| Any 2 units of money must be the same in terms of what they will buy |
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Term
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Definition
| Objects used as money must withstand the physical wear and tear that comes with being used over and over again |
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Term
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Definition
| Money must be easily divided into smaller units of value |
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Term
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Definition
| The dollar value of all final goods and services produced within a country's borders in a given year |
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Term
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Definition
| GDP expressed in constant, or unchanging prices |
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Term
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Definition
| GDP measured in current prices |
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Term
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Definition
| a period of economic growth a measured by a rise in real GDP |
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Term
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Definition
| A period of macroeconomic expansion followed by a period of contraction |
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Term
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Definition
| The height of an economic expansion, when real GDP stops rising |
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Term
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Definition
| A period of economic decline marked by falling real GDP |
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Term
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Definition
| The lowest point in an economic contraction |
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Term
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Definition
| What happens when you move from one job to another |
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Term
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Definition
| More employees needed during a certain season |
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Term
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Definition
| Workers skills do not match the skills that are needed |
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