Macroeconomics

‭The‬ ‭Federal‬ ‭Reserve‬ ‭System/the‬ ‭Fed:‬ ‭The‬ ‭central bank of the United States of America.‬ ‭The‬ ‭Fisher‬ ‭effect:‬ ‭The‬ ‭notion‬ ‭that‬‭an‬‭increase‬ ‭in‬ ‭expected‬ ‭inflation‬ ‭increases‬ ‭the‬ ‭nominal‬ ‭interest‬ ‭rate,‬ ‭leaving‬ ‭the‬‭expected‬‭real‬‭interest‬ ‭rate unchanged.‬ ‭Trade/exchange:‬ ‭The‬ ‭exchange‬ ‭of‬ ‭goods‬ ‭and‬ ‭services‬ ‭between‬ ‭individuals,‬ ‭frms,‬ ‭and‬ ‭countries.‬ ‭Trade‬ ‭defcit:‬ ‭When‬ ‭the‬‭total‬‭imports‬‭of‬‭goods‬ ‭and‬ ‭services‬ ‭exceed‬ ‭the‬ ‭total‬‭exports‬‭of‬‭goods‬ ‭and services (net exports are negative).‬ ‭Trade‬‭surplus:‬ ‭When‬‭the‬‭total‬‭exports‬‭of‬‭goods‬ ‭and‬ ‭services‬ ‭exceed‬ ‭the‬‭total‬‭imports‬‭of‬‭goods‬ ‭and services (net exports are positive).‬ ‭Trade-off:‬ ‭The‬ ‭process‬ ‭of‬ ‭choosing‬ ‭between‬ ‭two or more alternatives.‬ ‭Trading‬ ‭possibility‬ ‭curve:‬ ‭A‬ ‭diagram‬ ‭used‬ ‭to‬ ‭show‬ ‭the‬ ‭effects‬ ‭of‬ ‭a‬ ‭country‬ ‭specializing‬ ‭and‬ ‭trading with other countries.‬ ‭Transfer‬ ‭payments:‬ ‭Payments‬ ‭made‬ ‭by‬ ‭the‬ ‭government‬ ‭to‬ ‭certain‬ ‭members‬ ‭of‬ ‭a‬ ‭society‬ ‭who‬ ‭are‬ ‭in‬ ‭need‬ ‭of‬ ‭assistance,‬ ‭without‬ ‭an‬ ‭exchange of goods or services in return.‬ ‭Trough:‬ ‭The‬‭lowest‬‭point‬‭on‬‭the‬‭business‬‭cycle‬ ‭where‬ ‭real‬ ‭GDP‬ ‭and‬ ‭employment‬ ‭are‬ ‭at‬ ‭their‬ ‭lowest levels.‬ ‭T-account:‬ ‭A‬ ‭type‬ ‭of‬ ‭fnancial‬ ‭record‬ ‭that‬ ‭records‬‭assets‬‭on‬‭one‬‭side‬‭and‬‭liabilities‬‭on‬‭the‬ ‭other as part of double-entry bookkeeping.‬ ‭Unanticipated‬ ‭inflation:‬ ‭Unexpected‬ ‭or‬ ‭unpredicted inflation.‬ ‭Unemployed:‬ ‭Anyone‬‭aged‬‭16‬‭or‬‭older,‬‭able‬‭to‬ ‭work, but cannot fnd a job.‬

‭Unemployment‬ ‭rate:‬ ‭The‬ ‭number‬ ‭of‬ ‭unemployed‬‭people‬‭as‬‭a‬‭percentage‬‭of‬‭the‬‭labor‬ ‭force.‬ ‭Unit‬‭of‬‭account:‬ ‭The‬‭ability‬‭of‬‭an‬‭asset‬‭to‬‭serve‬ ‭as‬ ‭a‬‭measure‬‭of‬‭value‬‭to‬‭compare‬‭the‬‭prices‬‭of‬ ‭different items.‬ ‭Velocity‬ ‭of‬ ‭money:‬ ‭The‬ ‭average‬ ‭number‬ ‭of‬ ‭times money changes hands.‬

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