Begin Key Terms Basic Economic concepts Measurements Of

Begin

Key Terms Basic Economic concepts Measurements Of Economic Performance Aggregate Demand And Supply Key concepts Miscellaneous $100 $100 $200 $200 $300 $300 $400 $400 $500 $500

Key Terms- $100 What is AD Curve? Curve that shows the relationship between the aggregate price level and the quantity of aggregate output demanded by households, government and the rest of the world

Key Terms - $200 What is Nominal Interest Rate? The interest rate actually paid for a loan

Key Terms - $300 What is GDP Per Capita? Is GDP divided by the size of the population

Key Terms- $400 What is CPI? Measures the cost of the market basket of a typical urban American family.

Key Terms- $500 What is Demand Shock? An event that shifts the Aggregate Demand Curve.

Basic Economic Concepts - $100 What is the crucial problem of economics ? Allocating scarce production resources to satisfy wants

Basic Economic Concepts - $200 When one decision is made, the next best alternative not selected is called? Opportunity Cost

Basic Economic Concepts - $300 The basic economic problems are reflected in? Opportunity Cost and Production Possibilities

Basic Economic Concepts - $400 What is Law of Demand? States that there is an inverse relationship between prices and quantity demanded.

Basic Economic Concepts - $500 What happens if the production possibilities curve is a curved line concave to the origin? As more of 1 good is produced, more and more of the other goods must be given up

Measurements of Economic Performance- $100 What are 3 major economic goals? 1. Promote economic growth 2. Prevent unemployment 3. Keep Prices stable

Measurements of Economic Performance- $200 What does GDP tell us? GDP measures how well the U. S is doing financially

Measurements of Economic Performance- $300 What is economic growth? 1. An increase in real GDP over time 2. An increase in real GDP per capita over time

Measurements of Economic Performance- $400 What are 3 types of unemployment? 1. Frictional Unemployment 2. Structural Unemployment 3. Cyclical Unemplyment

Measurements of Economic Performance- $500 What is true about natural rate of unemployment? It varies over time

Aggregate Demand Supply - $100 What is the multiplier effect? Direct relationship between changes in spending and changes in real GDP

Aggregate Demand Supply - $200 What are the determinants of Aggregate Demand? 1. 2. 3. 4. Change in Consumer spending Change in Investment Spending Change in Government Spending Change in Net Export Spending

Aggregate Demand Supply - $300 What is Aggregate Supply? The amount of goods and services that firms will produce in an economy at different price levels.

Aggregate Demand Supply - $400 What are 4 types of Fiscal Policy? 1. 2. 3. 4. Discretionary Fiscal Policy Non-Discretionary Fiscal Policy Expansionary Fiscal Policy Contractionary Fiscal Policy

Aggregate Demand Supply - $500 Prices and wages tend to be Flexible upward, but inflexible downward

Key Concepts - $100 What are the shifters of demand? 1. 2. 3. 4. 5. Tastes and Preferences Number of Consumers Price of Related Goods Income Future Expectations

Key Concepts - $200 Identify the factors of production? Land, labor, capital and entrepreneurship

Key Concepts - $300 The law of increasing opportunity cost is reflected in shape of? Production Possibilities curve concave to the origin.

Key Concepts - $400 What is the circular flow model? A model which illustrates the flow of goods and services through the economy

Key Concepts - $500 What is economic growth? An increase in real GDP over time.

Miscellaneous- $100 If Aggregate Demand increases and Aggregate Supply decreases the price level will: Increase, but real output is indeterminate.

Miscellaneous- $200 A contractionary fiscal policy results in a: Leftward shift in the economy’s aggregate demand curve

Miscellaneous- $300 Graphically, demand-pull inflation is shown as a: Rightward shift of the AD curve along an up sloping AS curve

Miscellaneous- $400 What is PPC/ PPF? Illustrates trade-offs facing an economy that produces only two goods

Miscellaneous- $500 What are normal goods? When a rise in income increases the demand for a good.