Macroeconomics: Endgame

A savings plan operated by a state or educational institution designed to help families set aside funds for future college costs

the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources

resources owned by a business

Exchange goods without involving money.

The seven-member board that supervises the banking system of the United States

A certificate issued by a government or private company which promises to pay back with interest the money (principal) borrowed from the buyer of the certificate. Example- The city issued bonds to raise money for putting in new sewers.

A plan for making and spending money

Alternating periods of economic expansion and economic recession

investment spending by businesses that creates additional output and jobs, including new housing and increases in inventory

a method for managing pollution in which a limit is placed on emissions and businesses or countries can buy and sell emissions allowances

An interest-earning deposit that requires the funds to remain deposited for a fixed term. Withdrawal of the funds before the term expires results in a financial penalty.

an account at a bank against which checks can be drawn by the account depositor.

in real estate, a meeting of the seller, the buyer, and the lender of funds, or representatives of each party, to complete the transaction

This covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can't be repaired. This type of coverage is usually optional

the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

interest earned on both the principal amount and any interest already earned

covers your car for reasons other than a collision, such as theft, fire, vandalism

a measure of the overall cost of the goods and services bought by a typical consumer

spending by households on goods and services, with the exception of purchases of new housing

Fiscal policy used to decrease aggregate demand or supply. Deliberate measures to decrease government expenditures, increase taxes, or both. Appropriate during periods of inflation.

a report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances

a number assigned to a person that indicates to lenders their capacity to repay a loan. 300-900 (a higher score is better)

unemployment that rises during economic downturns and falls when the economy improves

Amount you must pay before you begin receiving any benefits from your insurance company

A situation in which prices are declining

a level of production in which the marginal product of labor decreases as the number of workers increases

Spreading out investments to reduce risk

the unlikely occurrence that two people each have a good the other wants

reserves that banks hold over and above the legal requirement

A period of economic growth as measured by a rise in real GDP

An increase in government purchases of goods and services, a decrease in net taxes, or some combination of the two for the purpose of increasing aggregate demand and expanding real output

the central bank of the United States

uncertainty about future outcomes that involve financial losses and gains

the use of government spending and revenue collection to influence the economy

12 Member group that buys and sells US gov. securities to influence the money supply.

The seizure of property from borrowers who are unable to repay their loans

A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs.

the level of employment reached when there is no cyclical unemployment; around 4%

Y=C+I+G+NX

spending by all levels of government on final goods and services

A measurement of the total goods and services produced within a country.

mutual funds that focus on stocks that have potential for above-average growth

Extremely rapid inflation. This was seen in post- Treaty of Versailles Europe, such as Germany. Countries printed money to pay off bills. This resulted in a massive wave of inflation. Over 50% per month.

A mutual fund that tries to match the performance of a particular index, like the S & P 500, by investing in the companies included in that index.

the percentage increase in the price level from one year to the next

The danger that money won't be worth as much in the future as it is today

a general increase in prices and fall in the purchasing value of money.

a delay between the onset of a problem and the implementation of a solution

protection against possible financial loss

what a company owes

insurance that provides protection from claims arising from injuries or damage to other people or property

the extra benefit of adding one unit

the cost of producing one more unit of a good

you should continue an activity as long as the marginal benefit is greater than the marginal cost

economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

a situation in which the free market, operating on its own, does not distribute resources efficiently

managing the economy by altering the supply of money and interest rates

the amount of money the banking system generates with each dollar of reserves

a specific type of loan that is used to buy real estate

An investment that holds a wide range of different investment instruments, providing diversification, including stocks and bonds

the face value of an amount of money

a tool used by the Federal Reserve to adjust the money supply by buying or selling U.S. government bonds in the financial market

The purchase of U.S. government bonds by the FED to increase the money supply

the sale of US government bonds by the FED to reduce the money supply

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

the time between a policy action and its influence on the economy

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

the amount remaining after the value of all liabilities is subtracted from the value of all assets

the height of an economic expansion, when real GDP stops rising

an amount to be paid for an insurance policy.

A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good.

Goods, such as clean air and clean water, that everyone must share.

real GDP divided by the total population of a country

GDP adjusted for inflation

the value of an amount of money in terms of what it can buy

A slowdown in a nation's economy

the fraction of deposits that banks hold as reserves

an account setup at work where you make contributions with after-tax dollars, which is invested in mutual funds, and qualified distributions at retirement are received income-tax free

A personal savings plan; contributions are not tax-deductible; earnings are tax-free

The number of years it takes for a certain amount to double in value is equal to 72 divided by its annual rate of interest.

a bank account that earns interest

shares of ownership in a company

unemployment that occurs when workers' skills do not match the jobs that are available

mutual funds that automatically adjust the risk profile (from stocks to bonds) of the fund as the investor gets older

An excess of imports over exports

when a country exports more than it imports

Benefits given by the government directly to individuals. Transfer payments may be either cash transfers, such as Social Security payments and retirement payments to former government employees, or in-kind transfers, such as food stamps and low-interest loans for college education.

the lowest point in an economic contraction, when real gross domestic product stops falling

Cost of living has doubled since 1970s. Relied on both parents working to support families.

the percentage of the labor force that is unemployed

the act of buyers and sellers freely and willingly engaging in market transactions