supply

the amount of products that would be offered to be sold

Scarcity

Happens when unlimited wants exceed or can not be met with limited resources we have

Demand

The amount of products that consumers are willing to buy

Macroeconomics

View on economy on a wider perspective such as nationally and internationally (Deals with unemployment, national income, rate of growth, gross domestic product, inflation and price levels etc)

Microeconomics

View on economy on a narrower perspective narrower view on a household, or a enterprise

blue-collar workers

Laborer who works in service/production part whether they are skilled or unskilled

underground economy

the economy that can not be reach hand of government. (Illegal market or transaction done by cash or gold without notice of government)

frictional unemployment

unemployment that occurs when people put efforts to get a job

stagflation

The economic phenomenon appears with stagnation and rise in market price

Gross Domestic Product

All the production activity that is made inside the borderline of a country whether it is from its citizen or foreigner.

macroeconomic equilibrium

Occurs when quantity of Aggregate supply and aggregate demand is met

Inflationary Gap

Amount occurs when Equilibrium GDP> Full employment GDP

Recessionary Gap

Amount occurs when Equilibrium GDP < Full employment GDP

Fiscal Policy

The effort of economic managing through the mean of government's authority

Full employment

The level of employment where no cyclical unemployment is occurring (Natural rate < 5%

national bank

ALSO CALLED central bank,
a commercial bank that is chartered under the federal government and is a member of the Federal Reserve System.

National currency

Legal tender or promised paper to have a value of exchange set by the country

M1

any item that one can use to directly purchase something; highest liquidity; ex. paper currency, traveler check

M2

place of exchange for money; supply and demand stems from FED and firms/households, respectively

Money Multiplier

1/(Reserve Rate)

Certificate of Deposit

It is a certificate from bank given to a person verification of deposit for a specified time

Monetary policy

The governmental method of controlling economy by supply ofmoney

savings account

Account that is fo large bank pays interest for the deposit, but it's not frequently withdrawn.

interest rate

A proportion of loan is given to compensate the usage of the money

member bank

bank that is part of a central clearing or central banking system