ECON 2101: Ch
16 (48 questions
and answers)
business cycles - answer Alternating increases and decreases in economic
activity that are typically punctuated by periods of recession and recovery.
double dip recession - answer A recession that begins after only a short
period of economic recovery from the previous recession.
national activity index - answer a weighted average of 85 indicators of
economic activity in the economy. When the index moves below 20.70, the
economy is probably moving into a recession
leading economic index - answer an independent business and research
association, is another index that economists look to when predicting
movements in the business cycle
indicators in the LEI - answer Average weekly hours, manufacturing
Average weekly initial claims for unemployment insurance
Manufacturers' new orders, consumer goods and materials
Index of supplier deliveries—vendor performance
Manufacturers' new orders, nondefense capital goods
Building permits, new private housing units
Stock prices, 500 common stocks
, Money supply, M2
Interest rate spread, ten-year Treasury bonds less federal funds
Index of consumer expectations
yield curve - answer Shows the relationship between the interest rate earned
on a bond (measured on the vertical axis) and the length of time until the
bond's maturity date (shown on the horizontal axis).
national income and product accounts - answer let economists judge our
nation's economic performance, compare U.S. income and output to that of
other nations, and track the economy's condition over the course of the
business cycle
circular flow diagram - answer Illustrates how households and firms interact
through product and resource markets and shows that economic aggregates
can be determined by examining either spending flows or income flows to
households
gross domestic product (GDP) - answer A measure of the economy's total
output; it is the most widely reported value in the national income and
product accounts (NIPA) and is equal to the total market value of all final
goods and services produced by resources in a given year.
gross national product (GNP) - answer reflects the market value of all goods
and services produced domestically and abroad using resources supplied by
U.S. citizens, while excluding the value of goods and services produced in the
United States by foreign-owned businesses
personal consumption expenditures - answer Goods and services purchased
by residents of the United States, whether individuals or businesses; they
include durable goods, nondurable goods, and services.
durable goods - answer products that have an average useful life of at least
three years. Automobiles, major appliances, books, and musical instruments
16 (48 questions
and answers)
business cycles - answer Alternating increases and decreases in economic
activity that are typically punctuated by periods of recession and recovery.
double dip recession - answer A recession that begins after only a short
period of economic recovery from the previous recession.
national activity index - answer a weighted average of 85 indicators of
economic activity in the economy. When the index moves below 20.70, the
economy is probably moving into a recession
leading economic index - answer an independent business and research
association, is another index that economists look to when predicting
movements in the business cycle
indicators in the LEI - answer Average weekly hours, manufacturing
Average weekly initial claims for unemployment insurance
Manufacturers' new orders, consumer goods and materials
Index of supplier deliveries—vendor performance
Manufacturers' new orders, nondefense capital goods
Building permits, new private housing units
Stock prices, 500 common stocks
, Money supply, M2
Interest rate spread, ten-year Treasury bonds less federal funds
Index of consumer expectations
yield curve - answer Shows the relationship between the interest rate earned
on a bond (measured on the vertical axis) and the length of time until the
bond's maturity date (shown on the horizontal axis).
national income and product accounts - answer let economists judge our
nation's economic performance, compare U.S. income and output to that of
other nations, and track the economy's condition over the course of the
business cycle
circular flow diagram - answer Illustrates how households and firms interact
through product and resource markets and shows that economic aggregates
can be determined by examining either spending flows or income flows to
households
gross domestic product (GDP) - answer A measure of the economy's total
output; it is the most widely reported value in the national income and
product accounts (NIPA) and is equal to the total market value of all final
goods and services produced by resources in a given year.
gross national product (GNP) - answer reflects the market value of all goods
and services produced domestically and abroad using resources supplied by
U.S. citizens, while excluding the value of goods and services produced in the
United States by foreign-owned businesses
personal consumption expenditures - answer Goods and services purchased
by residents of the United States, whether individuals or businesses; they
include durable goods, nondurable goods, and services.
durable goods - answer products that have an average useful life of at least
three years. Automobiles, major appliances, books, and musical instruments
