AP Macroeconomics - Summer Vocabulary

Percentage of the labor force that is looking for work but unable to find it

• opportunity cost

• unemployment rate

• interest rate

• federal funds rate

The changing of the money supply by the Federal Reserve in an attempt to stabilize the economy

• interest rate

• fiscal policy

• gross domestic policy

• monetary policy

Caused by a recession

• capital stock

• structural unemployment

• frictional unemployment

• cyclical unemployment

Interest rate banks charge other banks on overnight loans

• Federal Reserve

• federal funds rate

• opportunity cost

• unemployment rate

More job seekers than jobs available often due to outdated skills

• Open Market Operations

• interest rate

• structural unemployment

• frictional unemployment

The study of how society satisfies unlimited wants with limited resources

• microeconomics

• interest rate

• recession

• economics

The buying and selling of government bonds by the Federal Reserve

• Open Market Operations

• Opportunity Cost

• velocity of money

• Human Capital

Government spending and taxation used to stabilize the economy

• Gross Domestic Policy

• fiscal policy

• budget deficit

• monetary policy

The next best thing given up while making an economic decision

• unemployment rate

• discount rate

• velocity of money

• opportunity cost

Government deficit spending increases, interest rates, investment decreases

• discount rate

• opportunity cost

• crowding out

• budget deficit