Macroeconomics Quiz

Inflation = General increase in prices and fall in the purchasing value of money Gross Domestic Product = The total value of goods produced and services provided in a country during one year Unemployment Rate = The measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force Fiscal Policy = Government policy that attempts to manage the economy by controlling taxing and spending

Consumer Price Index = An index of the variation in prices paid by typical consumers for retail goods and other items Balance of Trade = The difference in value between a country's imports and exports Business Cycle = A cycle or series of cycles of economic expansion and contraction Public Debt = The amount of money that a country's government has borrowed, by various means

Recession = A period of temporary economic decline during which trade and industrial activity are reduced Economic Growth = An increase in the amount of goods and services produced per head of the population over a period of time Interest Rate = The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding Monetary Policy = The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency