Econ Unit 3

the total market value of all final goods and services produced within a country within a given period of time

GDP, consumption, investment, government purchases, net exports

a measure of a country's economic output that accounts for its number of people. It divides the country's GDP by its total population

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

period of reduced economic activity

Lowest point of a wave

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

unemployment that occurs when people take time to find a job

unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

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

unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season

A tax for which the percentage of income paid in taxes increases as income increases

A tax in which the average tax rate is the same at all income levels.

A tax for which the percentage of income paid in taxes decreases as income increases

principle of taxation based on belief that taxes should be paid according to level of income regardless of benefits received

A concept of tax fairness that states that people should pay taxes in proportion to the benefits they receive from government goods and services.

a shortfall of tax revenue from government spending

an excess of tax revenue over government spending

Government policy that attempts to manage the economy by controlling taxing and spending. Managed by president and congress

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates. Managed by the FEDS

the total amount of money that a country's government has borrowed, by various means.

The federal reserve

a fiscal policy used to encourage economic growth, often through increased spending or tax cuts

a fiscal policy used to reduce economic growth, often through decreased spending or higher taxes

Economic policy of shielding an economy from imports.

limits on the number of a product that can be imported

The measure of how much one currency is worth in relation to another.

An excess of imports over exports

when a country exports more than it imports

the value of the dollar is more than that of other countries, foreign goods are less expensive

the value of the dollar is less than that of other countries, foreign goods are more expensive

If countries specialize and make the goods, they have comparative advantage in, then trade and the world ends up with more

the ability to produce a good using fewer inputs than another producer