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O equilibrium real gross domestic product gdp the

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o Equilibrium real gross domestic product (GDP): The value of total output (real GDP) produced when the economy is in a balanced state in which aggregate supply matches aggregate demand and leakages equal injections. o Expansion: An upturn or increase in the economy that lasts at least two consecutive quarters of a year. o Expansionary fiscal policy: Government strategy that increases government spending and/or reduces taxes. The purpose is to reach full employment. F o Factor market: Any place where factors of production (land, labor, and capital) are bought and sold. o Factor of production: The use of a resource to create goods and services. o Federal Deposit Insurance Corporation (FDIC): A federally charted corporation that insures deposit liabilities of commercial banks and savings and thrift institutions. o Federal Insurance Contributions Act (FICA): Legislation that allocates a mandatory percentage of earned income up to an annual limit that must be paid into each of the Social Security and Medicare programs. o Federal Open Market Committee (FOMC): A group of 12 members that determines the policies of the Federal Reserve Bank, the central bank in the U.S. economy that controls monetary policy. o Federal Savings and Loan Insurance Corporation (FSLIC): A federally chartered corporation that insures deposit liabilities in savings and loan banks. o Federal funds: Reserves borrowed by one bank from another for short periods of time, such as overnight. o Final output: Goods and services for final use, as opposed to those used by businesses in the production of some other product. o Financial institution: A monetary business with the primary role of buying, selling, or holding monetary assets. o Fiscal policy: The use of government collection and spending of tax revenue to influence changes in full employment, inflation, and other macroeconomic outcomes. o Fiscal stimulus: Action on the part of the government to encourage production through alterations in tax policy and federal expenditures.
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o Fiscal target: A macroeconomic goal of specific aggregate demand and GDP levels toward which government policy aims, by cutting taxes or increasing spending. o Fixed income: Money received in set amounts at regular intervals of time which risks being eroded in spending power by inflation. o Flexible income: Money received which is adjusted for inflation and therefore does not risk erosion in spending power. o Flow: An economic term referring to accumulation that occurs over time and is measured as units over time, such as dollars per year in the deficit flow. o Frictional unemployment: Joblessness resulting from people who are between jobs or first entering the labor market. This can include individuals who quit, are fired, or are laid off, as well as first-time jobseekers.
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