I am working on my study guide for my final exam and im not sure my answers are correct. Can someone help me out please?
48. What is Gross Domestic Product? How is GDP calculated? Why does a good have to be purchased to be included? What is included / excluded in the GDP calculation?
49. What does the word “real” mean in economics?
50. Why is real per capita GDP such an important measurement? How does it affect standard of living?
51. What are the four components of GDP? Who buys most of the goods and services produced in the United States?
52. What is an economic indicator? What are some examples of economic indicators? What is CPI?
53. Describe the four parts of the business/economic cycle. What are the characteristics of each?
54. What are the four types of unemployment defined by economists?
55. What sources produce the most revenue for the federal government? State governments?
56. What is the largest category of federal spending?
57. What is the major expense of state and local governments?
58. What is a federal budget deficit? Federal budget surplus? What does “Crowding Out” mean?
59. What is the ability-to-pay principle of taxation? What is the benefits-received principle of taxation?
60. What is a progressive tax? Regressive tax? Proportional tax?
61. What is fiscal policy?
62. What are some of the methods the federal government uses to control fluctuations in the business cycle? Graph and explain each.
63. What is monetary policy?
64. What are the three most important tools the Fed uses to influence and regulate the money supply? Graph and explain each.
65. How do aggregate supply and aggregate demand work together? What is Macroeconomic Equilibrium? How is it affected by monetary and fiscal policy?
66. What is the Federal Reserve System? What functions does the Fed perform?
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1) Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living . GDP = G + C + I + NX . The price of a good = the money which the customers spend = Consumption => Purchasing a good include in GDP
2) Real is mean that it's can see and use for a long time like money , goods , services
3) Real per capita GDP can know that the improvement of the country or the nation from last year to next year . Real per capita GDP is one of the factors of standard of living
4) There are : Government purchase , Consumption , Investment and net export . That's Consumption
5) An Economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices, earnings reports, and economic summaries. Examples: unemployment rate, quits rate, housing starts, Consumer Price Index (a measure for inflation), Consumer Leverage Ratio, industrial production, bankruptcies, Gross Domestic Product, broadband internet penetration, retail sales, stock market prices, money supply changes.
6)
Contraction: A slowdown in the pace of economic activity
The lower turning point of a business cycle, where a contraction turns into an expansion
Expansion: A speedup in the pace of economic activity
Peak: The upper turning of a business cycle
7)
Seasonal unemployment is a product of regular, recurring changes in the hiring needs of certain industries on a monthly or seasonal basis.
Frictional unemployment is a product of the short-term movement of workers between jobs and of first-time job seekers.
Structural unemployment is a product of technological change and other changes in the structure of the economy.
Cyclical unemployment is a product of business-cycle fluctuations.
8) http://www.taxpolicycenter.org/briefing-book/state...
9) Social Security
10) Education
11) The financial shortage of the federal government's budget. It represents more money being spent than is coming in via taxes and other income. ( Tax < Government purchase ) ( You can kown Federal budget surplus ) . An economic concept where increased public sector spending replaces, or drives down, private sector spending. Crowding out refers to when government must finance its spending with taxes and/or with deficit spending, leaving businesses with less money and effectively "crowding them out." One explanation of why crowding out occurs is government financing of projects with deficit spending through the use of borrowed money. Because the government borrows such large amounts of capital, its activities can increase interest rates. Higher interest rates discourage individuals and businesses from borrowing money, which reduces their spending and investment activities.
12) The ability-to-pay principle in taxation maintains that taxes should be levied according a taxpayer's ability to pay. This progressive taxation approach places an increased tax burden on individuals, partnerships, companies, corporations, trusts and certain estates with higher incomes. The theory is that individuals who earn more money can afford to pay more in taxes.A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases
13)fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy
14) http://www.artsci.wustl.edu/~econ502/w6528.pdf
15) Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability
16)
1. Open market operations
2. Reserve requirements
3. The 'Discount Window'
17) http://people.uleth.ca/~richard.mueller/MacroChap0...
18) The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States . The Federal Reserve's most primary function is to control inflation without triggering a recession. In addition to that, the Fed has three other less visible, but no less critical, functions:
Supervise the nation’s banking system to protect consumers.
Maintain the stability of the financial markets and constrain potential crises.
Be the central bank for other banks, the U.S. Government, and foreign banks.
Multiply your grade on the ultimate via .2 (20%) (one hundred X .2) i'll anticipate the leisure is solely your semester grade... So eighty five X .8 (eighty%) Add the two collectively and get 88% B plus! Just right work.