ECONOMICS UNIT 4
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ECONOMICS UNIT 4
What is the consumer section?
section of a newspaper that has articles relating to consumers.
What is important to economic growth?
the output of goods and services per head of population.
What is the effect of decreasing labor productivity?
it is now less than the last increment of labor.
What is the Gross Domestic Product?
the market value of the goods and services produced by a country.
What is a market basket?
a group of products or services in a specific market.
When did the worst downturn of the business cycle occur in U.S. history?
The Great Depression.
What occured on October 29, 1929?
"Black Tuesday" the day the stock market completely collapsed.
What is cyclical unemployment?
occurs when the unemployment rate moves in the opposite direction as the GDP growth rate.
When is full employment reached?
anything under 5 percent. It fell to 3.3 percent in late 2000.
What is a Lorenz curve?
a function of the cumulative proportion mapped onto the corresponding cumulative.
What is the negative income tax?
a revolution in American social policy.
What regulates the Federal Reserve System?
The Board of Governors.
What is the Fed's impact on bank holding companies?
They're in control of two or more banks, making it easier for the firm to raise capital.
What does the Fed require of all its member banks?
requires banks to hold a percentage of all deposits in the bank.
What types of currency is categorized as M-1?
The Yemeni Rial.
Who does the Fed differ from many politics?
corporate, academic, and religious institutions.
What is misey index?
the unemployment rate added to the inflation rate.
What are fiscal policies?
government policies relating to taxes and spending, with the goals of employment, price stability, and growth.
What are supply-side economics?
a school of macroeconomic thought that argues that economic growth.
What are the views of supply-sides with regard to taxes?