Economics 3

27問 • 1年前

問題一覧

The central bank activities that are directed toward influencing the quantity of money and credit in an economy.

Monetary Policy

During Inflation The central bank increases interest rates and limits the money supply to slow growth and decreases inflation.

Contractionary Monetary Policy

During Recession The central bank lowers interest rates, so consumer spending and borrowing increase.

Expansionary Monetary Policy

The selling and buying of bonds and securities.

Open Market Operations

Interest rate charged to commercial banks and other depository institutions.

Discount Rate

The amount of fund that banks hold in reserve to meet withdrawals.

Reserve Requirement

Consumer goods, raw materials, food, and machinery bought and sold in the international marketplace

International Trade

A product that is sold to the globat market. This indicates money inflow or money flowing inside the economy/country.

Export

A product that is bought from the global market. This indicates money outflow or money flowing outside the economy.

Import

Difference between all money flowing into the country in a particular period of time and the outflow of money to the rest of the world (export-imports)

Balance of Payment (BOP)

Trade Balance (imports and exports are equal/assets and liabilities are balanced.

BOP is Zero

indicates surplus/there are more exports than imports/favorable balance of trade.

Positive BOP

indicates deficits/there are more importa than exports/unfavorbalebalance of trade.

Negative BOP

Taxes on imports and exports

Tariff

Import limit, set amount or maximum amount of goodsthat could be imported.

Quota

The rate at which the overall level of prices for various goods and services in an economy rises (increase in prices of commodities) over a period time. As a result, money loses value because it no longer buys as much as it did in previous times; the purchasing power of a country's currency declines.

Inflation

a period of fast-rising inflation

Hyperinflation

a period of spiking inflation plus slow economic growth and high unemployment

Stagflation

a period when prices drop significantly, due to too large a money supply or a shrump in consumer spending; lower costs mean companies ear less and may institute layoffs.

Deflation

Fall of GDP for two consecutive quarters

Recession

Fall of GDP for more than two quarters

Depression

Prolonged depression and unemployment.

Economic Collapse/Economic Meltdown

Happens when individual who are of working age are looking for a job, but can't find one.

Unemployment

Short-lived unemployment that happens when people quit or change jobs including new graduates.

Frictional Unemployment

Variation in unemployment during the course of economic downturns and upturns (cycle). Rise in employment during recession, and fall during economic growth.

Cyclical Unemployment

Happens when there is a skill mismatch between the worker and the industry

Structural Unemployment

Happens when individuals work in less paying or low-paying or lowing-skill jobs.

Underemployment

Trends and Issues Overall

Cydrix James Natanauan · 154問 · 1年前

Trends and Issues Overall