Macroeconomics Vocab Review

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Gross Domestic Product (GDP)

Back

total market value of all final, new goods and services produced in a country during a single year

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specialization

Back

when people, businesses, regions, nations, etc. concentrate on goods and/or services they can produce better than others

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mandatory spending

Back

federal spending required by law that continues each year without the need for congressional approval

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GDP per capita

Back

GDP on a per-person basis; GDP divided by population

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standard of living

Back

material well-being of an individual, measured by how well their needs and wants are satisfied

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discretionary spending

Back

spending for federal programs that must receive approval each year

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open market operations (OMO)

Back

purchase or sale of U.S. government bonds and treasury bills

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discount rate

Back

interest rate that the Fed charges on its loans to member banks

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monetary policy

Back

manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve

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fiscal policy

Back

how the government uses taxes and spending to reach economic goals