| A | B |
|---|
| Aggregate Demand | Total amount of goods and services that all people in an economy are demanding |
| Aggregate Supply | Total amount of goods and services that all producers in an economy are produce |
| Bond | Type of government security |
| Business Cycle | Alternating periods of growth and recession in an economy |
| Consumer Price Index (CPI) | Measure of inflation as it affects the average consumer |
| Cost-of-living Adjustment | Contract agreement in which wages increase at the same rate as inflation |
| Cyclical Unemployment | Type of unemployment that occurs because of a downturn in the economy |
| Deflation | Decrease in the average price of goods and services |
| Depression | Recession that lasts a long time and causes a sever drop in GDP |
| Discount Rate | Interest rate that the Federal Reserve charges when it lends money to other banks |
| Downturn | Part of the business cycle in which aggregate demand declines and GDP falls |
| Federal Deposit Insurance Company (FDIC) | Insured money in the bank was protected up to a certain amount ($100 |
| Federal Open Market Committee (FOMC) | Part of the Federal Reserve that regulates money supply through buying / selling government securities |
| Fiscal Policy | A government policy for dealing with the budget (especially with taxation and borrowing) |
| Frictional Unemployment | Unemployment that occurs when people take time to find a job |
| Gross Domestic Product | The total value of goods and services produced within the borders of a country during a specific time period |
| Index | Base year used to establish a standard value against which inflation is measured |
| Inflation | A general and progressive increase in prices |
| Key Economic Indicators | Measurements of various "symptoms" of how healthy the national economy is |
| Labor Force | Number of people in a nation who either have a job or are looking for a job |
| Monetary Policy | Federal Reserve policy that attempts to manage the economy by controlling the money supply and thus interest rates |
| National Debt | Total amount of money owed by the federal government |
| Nominal GDP | Value of the GDP before adjusting for inflation |
| Open-market Operations | Federal Reserve buys and sells bonds in order to regulate the money supply |
| Real GDP | Value of the GDP after adjusting for inflation |
| Recession | An economic downturn where real GDP declines for six months (two consecutive quarters) |
| Recovery | Part of the business cycle where demand and production begin increasing |
| Reserves | % of bank deposits available for cash withdraws |
| Seasonal Unemployment | Unemployment that occurs among people whose jobs depend on the weather |
| Security | Document issued by the government for which you can pay a certain price now |
| Stagflation | A period of slow economic growth and high unemployment while prices rise |
| Structural Unemployment | Unemployment that occurs when workers' skills do not match the jobs that are available |
| Unemployment Rate | % of people in the labor force who are looking for work |
| Upturn | Part of the business cycle in which demand and production begin increasing again; recovery |
