PBMF Ch 2 Economic Activity

Central bank regulation of money supply and interest rates.

• monetary policy

• fiscal policy

• commerce

• price fixing

Activities involved in buying and selling goods on a large scale.

• commerce

• fiscal policy

• GDP

• recession

All the people in a country who capable of working and want to work.

• labor force

• unemployment

• monopoly

• business cycle

Occurs when two or more businesses in an industry agree to sell the same good or service at the same price.

• fiscal policy

• price fixing

• monopoly

• recession

Alternating periods of expansion and contraction in an economy.

• business cycle

• recession

• commerce

• GDP

Rate of change in prices calculated on a monthly or yearly basis.

• inflation

• business cycle

• recession

• expansion

Tax and spending decisions made by the President and Congress.

• fiscal policy

• monetary policy

• business cycle

• commerce

The market value of all final products produced in a country during a specific period of time.

• gross domestic product

• price fixing

• commerce

• business cycle

A period of significant decline in the total output, income, employment, and trade in an economy.

• expansion

• deflation

• inflation

• recession

Market structure with one business that has complete control of a market's entire supply of goods and services.

• monopoly

• commerce

• fiscal policy

• expansion