Unit 4 Part 2 Review

Illustrates the alternating periods of economic growth and decline in an economy

• Economic Indicator

• Business Cycle

• Market Fluctuation

• Financial Trend

Increasing the money supply and lowering interest rates is what type of policy?

• Tight money policy

• Easy money policy

• Fiscal policy

• Monetary contraction policy

What type of monetary policy will result in an increase in prices, a decrease in unemployment, and an increase in economic growth (RGDP)

• Tight Money Policy

• Easy Money Policy

• Contractionary Policy

• Neutral Monetary Policy

Decreasing Government Spending and/or Increasing Taxes

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Monetary Policy

• Supply-Side Economics

Government spending is greater than tax revenue

• Budget Surplus

• Budget Deficit

• Balanced Budget

• Fiscal Responsibility

The 4 main parts of the Federal Reserve

• Board of Governors

• Federal Reserve Advisory Council

• Federal Open Market Committee

• 12 Regional Banks

The total amount of money the government has borrowed over time (it is the result of running budget deficits)

• National Debt

• Public Deficit

• Fiscal Surplus

• Government Expenditure

RGDP declines for two consecutive quarters (6 straight months)

• Recession

• Inflation

• Stagnation

• Depression

Monetary policy is used to contract or expand the _______ ________.

• Money Supply

• Credit Demand

• Interest Rates

• Fiscal Policy

The __________ appoints the Chairman of the Federal Reserve and __________ confirms the appointment.

• Senate; President

• President; Congress

• Congress; Senate

• Federal Reserve Board; President