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Peregrine Exam Day 7
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Peregrine Exam Day 7
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Peregrine Exam Day 7price level - CORRECT ANSWER-a measure of the average prices of goods and
services in the economy
Price levels are expressed in... - CORRECT ANSWER-small ranges or as
discrete values such as dollar figures
Price levels are leading indicators in the economy; - CORRECT ANSWER-rising
prices, indicate higher demand leading to inflation while declining prices indicate
lower demand or deflation
In the investment world.... - CORRECT ANSWER-price level is referred to as
support and resistance, which help define entry and exit points
monetary policy - CORRECT ANSWER-Government policy that attempts to
manage the economy by controlling the money supply and thus interest rates.
Aggregate Demand - CORRECT ANSWER-the amount of goods and services in
the economy that will be purchased at all possible price levels
How is CPI used? - CORRECT ANSWER-1. as a target policy: to gauge our
success in low inflation
-to measure inflationary tendencies
2. to index payments
3. to translate from nominal to real values
Consumer transaction - CORRECT ANSWER-A transaction in which an
individual incurs an obligation primarily for personal, family, or household
purposes.
economic growth - CORRECT ANSWER-the ability of the economy to increase
the production of goods and services
Increases in capital goods, labor force, technology, and human capital -
CORRECT ANSWER-can all contribute to economic growth
, Economic growth is commonly measured in terms of the increase in aggregated
market value of additional goods and services produced - CORRECT
ANSWER-using estimates such as GDP
National Savings - CORRECT ANSWER-the sum of private savings and the
budget balance, is the total amount of savings generated within the economy
National savings rate is GDP that is... - CORRECT ANSWER-saved rather than
spent in an economy
It is calculated as the difference between a nation's income and consumption
divided by income - CORRECT ANSWER-National savings rate
The_____ is an indicator of a nation's health as it show trends in savings, which
lead to investments - CORRECT ANSWER-national savings rate
Household savings can be a source of borrowing - CORRECT ANSWER-for
governments to provide funds for public works and infrastructure needs
fiscal policy - CORRECT ANSWER-Government policy that attempts to manage
the economy by controlling taxing and spending.
monetary policy - CORRECT ANSWER-Government policy that attempts to
manage the economy by controlling the money supply and thus interest rates.
Supply-side policies - CORRECT ANSWER-economic policies designed to
stimulate the economy by increasing production
expansionary fiscal policy - CORRECT ANSWER-An increase in government
purchases of goods and services, a decrease in net taxes, or some combination
of the two for the purpose of increasing aggregate demand and expanding real
output
expansionary monetary policy - CORRECT ANSWER-monetary policy that
increases aggregate demand
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