Economics Unit 2 Review

2. A general rise in the price of most goods and services.
4. These institutions provide checking, savings, and investing services for customers.
5. This is what happens when countries have an advantage over other countries in the production of a good or service.
7. The __ rate is an economic indicator that measures the % of people who can't find work.
8. The price where supply and demand are equal.
9. The FED will __ interest rates if the economy is in a recession.
12. The Federal __ is a plan for spending money, based on the amount of tax revenue they collect.
16. Characterized by low GDP, high unemployment, and reduced consumer spending.
17. Competition from other countries.
18. Shares of ownership in a company you can invest in.

1. __ policy involves the government's use of taxes and spending to stimulate the economy.
3. The __ market is the part of the Circular Flow Model where goods and services are bought and sold.
6. One way the government can stimulate the economy is to cut our __ taxes.
10. The Federal __ (or FED) is in charge of regulating the banking system.
11. The part of the federal government in charge of passing tax laws and creating a federal budget.
13. Workers form these in order to fight for higher wages and better working conditions.
14. The is the value of all goods and services produced in a country.
15. An example of government regulation in the economy is the ___ wage law.