Unit 5 Economics

1. A period of declining national economic activity usually measured as a decrease in GDP for at least two consecutive quarters (six months).
3. Money Policy, A monetary policy designed to accelerate the rate of growth the money supply in order to stimulate economic growth.
6. Indicators, Statistics that help economists judge the health of an economy.
9. An increase in the overall price level of goods and services produced in an economy.
12. Policy, Government policy regarding taxing and spending .
13. policy, A monetary policy designed to slow the rate of growth of the money supply in order to reduce inflation.
14. Cycle, A recurring pattern of growth and decline in economic activity over time.
15. effect, A ripper effect in which a change in spending by one person or business leads to additional changes in spending by another person or buisness.
16. Price Index, A measure of price changes in consumer goods and services over time;the CPI shows changes in the cost of living from year to year.

2. , A combination of economic stagnation-or slowdown- and high inflation; Features of stagflation include slow or zero economic growth, high unemployment, and rising prices.
4. Rate, The percentage of the labor force that is not employed but is actively seeking work.
5. spending, Government spending in excess of what is collected in revenues.
7. Deficit, The debt ceiling is the limit placed by Congress on the amount of debt the government can accrue
8. Policy, Central bank policy aimed at regulating the amount of money in circulation.
10. Rate, The percentage increase in the average price level of goods and services from one month or year to the next.
11. Domestic Product, The market value of all final goods and services produced within a country during a given period of time.
16. effect, The possible effect of increased government borrowing on businesses and consumers; by driving interest rates up, high levels of government borrowing may crowd private borrowers out of the lending marketing.