Economic Basics

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Download GDP and the Business Cycles PowerPoint

Important to Remember:

      1. GDP is the single most important measure of overall economic performance.
      2. GNP is GDP+payments from outside of US-payments to foreign owned resources
      3. 5 Phases of the Business Cycle
      4. Unemployment and Types of Unemployment
      5. Inflation and Deflation

 

GDP Video Links to an external site.What is the FED Video Links to an external site. Links to an external site.

Important to Remember:

  • The Federal Reserve is the central bank and serves to strengthen banking system and economy.  It oversees monetary system of our nation.  There are 12 Reserve banks with each collecting data on its region's economy.
  • FOMC - Federal Open Market Committee - branch of the Federal Reserve Board that decides direction of monetary policy.
  • Monetary policy is typically implemented by a central bank, while fiscal policy decisions are set by the national government. However, both monetary and fiscal policy may be used to influence the performance of the economy in the short run.  Copied from http://www.frbsf.org/education/publications/doctor-econ/2002/march/fiscal-monetary-policy/ Links to an external site.on August 9, 2016.
  • The Federal Reserve has three primary functions:
      1. Monetary Policy
      2. Banking Supervision
      3. Financial Services

https://www.federalreserveeducation.org/about-the-fed/structure-and-functions Links to an external site. 

 

The Four Basic Functions of Money Links to an external site.

The four functions as described in the video using the above link are:

1. unit of account

2. store of value

3. medium of exchange

4. standard of deferred payment

 

Complete

What Is Economics? Assignment

The Functions of Money Quiz

Unit 4.1 Economic Quiz