Macroeconomics-Sophia Vocabulary- UNIT ONE questions with correct answers

Aggregate Demand - correct answer Total amount of goods and services demanded in an economy at a specific point in time and at a prevailing price level Automatic Stabilizer - correct answer Government policies that go into effect automatically as the economy slows to counter economic slowing; the payments increase in a recession and decrease with increased employment as an economy grows and enters into the expansionary phase Balance of Payments - correct answer A record of all monetary transactions that flow across a country's border; two major components are the current account and the capital account Base Currency - correct answer In an exchange rate calculation, the base currency is the currency being purchased. The exchange rate provides the amount of the price currency needed in the exchange Binding Constraint - correct answer Typically a regulatory constraint that preempts market equilibrium by setting different price level—price ceiling or price floor Bureau of Labor Statistics (BLS) - correct answer The government agency that produces the Employment Situation report of which the unemployment rate is one statistic Business Cycles - correct answer The movement of an economy through expansion, peak, contraction, and trough over time;