BSM 100 Chapter Notes - Chapter 4: Canada Deposit Insurance Corporation, Producer Price Index, Gross Domestic Product
13 Jan 2017
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Economy: financial and social system of how resources flow through society (production>distribution>consumption) Economics: study of the choices that people, companies, and governments make in allocating society"s resources. Macroeconomics: study of country"s overall economic issues (employment rate, gross domestic product, taxation policies) Microeconomics: study of smaller economic units (individual consumers, families, individual businesses) Fiscal policy: government influencing the economy through taxation and spending. Budget surplus: overage that occurs when revenue is higher than expenses over a given period of time. Budget deficit: shortfall that occurs when expenses are higher than revenue over a given period of time. Federal debt: sum of all the money that the federal government has borrowed over the years and not yet repaid. Monetary policy: bank of canada decisions which shape economy by influencing interest rates and the supply of money. Money supply: total amount of money within the overall economy. M1 money supply: all currency plus chequing accounts and travellers cheques.
