Here is the information on what you should study for the quiz/test on Friday:
•Basic Macro:
•a. Identify how: income, employment, and prices are determined by the spending and production
•b. Define GDP (and the 4 stages), economic growth, unemployment (and the 3 types), CPI, inflation, stagflation, and aggregate supply and aggregate demand (and the 4 components).
•d. Identify types of structural, cyclical, and frictional unemployment.
•e. Define the stages of the business cycle
•f. Identify the difference between national debt and government deficits.
•Monetary Policy:
•a. Describe the organization of the Federal Reserve System.
•b. Define monetary policy.
•c. Identify the three tools of monetary policy and how they impact the money supply, spending and interest rates
Fiscal Policy:
•a. Define fiscal policy, progressive taxes, regressive taxes, proportional taxes, contractionary policy, expansionary policy
•b. Identify how changing taxes and spending can impact the economy
•c. Identify types of taxes, types of government spending
