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Definition
| work part time but want to work more. They are not included in the unemployed. |
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| A level of employment that is not caused by decreased level of |
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Definition
| temporary when you are switching jobs |
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| unemployment linked to seasonal changes. Like lifeguards, farmers |
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Definition
| jobs exist but workers looking for work don't have the skills needed for that job |
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| caused by decrease of economic activity like a recession. |
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Term
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| the rise in the level of prices. purchases power of money goes down so prices have to raise |
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Term
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Definition
| a measure of changes in the prices of goods and services commonly purchased by consumers |
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Term
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Definition
measure of whole sale
how much cost a producer has to make it |
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Definition
| demand for good rises faster than the production |
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Definition
| when the production of the product goes up and the prices rise |
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Term
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Definition
| people with more wealth pay a higher portion of their income towards taxes |
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Term
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Definition
| everyone pays the same tax rate |
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Term
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Definition
| poor people pay a higher proportion of their income towards taxes. example is sales tax |
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Term
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Definition
| Individual income tax, social insurance (FICA), Corporate income, Excise taxes, Estate & gift taxes, customs duties |
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Term
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Definition
| Sales tax, property tax, individual income tax, corporate income tax |
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Term
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| a share or ownership of a business or corporation-they raise money by selling them |
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Definition
| has to be paid back (like a loan) |
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Term
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| buy and sell stocks, Wall street-->NYSE and NASDQ |
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Term
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Definition
| a basket of stocks managed by experts and you can buy into the fund. |
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| part of a company's profits, distributed to owners |
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| the price changes a lot over a relatively short period of time |
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| a wide selection of stocks from various industries |
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Term
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Definition
the federal government's use of taxes and gov't spending to affect the economy.
Goal: to increase aggregate demand (total spending) or to fight inflation-overall, to create a stable economic environment |
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Term
| Expansionary fiscal policy |
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Definition
intended to spur growth in the economy
GDP increases and Unemployment falls
may involve increased gov't spending, decreased taxes, or both |
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Term
| Contractionary fiscal policy |
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Definition
intended to decrease aggregate demand and slow the economy to prevent inflation
ex)Gov't might cut spending or raise taxes-- both take money out the economy
Five limitations of fiscal policy |
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Term
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Definition
| policy fixes lag behind the conditions they're designed to address. Congressional action/inaction. Can depend on policy:time for tax changes to take effect shorter than for gov't spending. |
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Term
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Definition
| if economy is already moving out of recession when you intro expansionary fiscal policy, might lead to inflation |
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Term
| rational expectations theory |
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Definition
| individuals and bussinesses expect that changes in fiscal policy will have particular outcomes and they take actions to protect their interests against those outcomes |
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Term
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Definition
| council of Economic Advisors advises press on fiscal issus, but because of political pressures he may not always follow it, and Congress might not always agree. All tax bills originate in the House. |
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Term
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Definition
| Not every state or region may be experiencing the same issues. e.g., Gulf coast experiences high-tech boom that causes inflation |
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Term
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Definition
| Congress created the fed reserve system in order to control the amount of money that is in the economy {circulation} |
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