Fiscal & Monetary Policy

What do we call government actions involving taxation and spending to influence the economy?

Fiscal policy

What do we call actions taken by a central bank to control the money supply and interest rates?

Monetary policy

What typically happens to interest rates when a central bank wants to slow down inflation?

Interest rates are usually raised

What do we call an economy shrinking for two consecutive quarters?

A recession

What is unemployment?

The state of not having a job while actively seeking one