governments and markets
circular flow
business cycle
unemployment
miscellaneous
100
price ceilings
What is a governmental price maximum?
100
outputs market
What is the market that acts as an intermediary between households that buy output and firms that sell them?
100
scatter plot
What kind of graph or model is the business cycle model?
100
the information needed to get jobs; short lived until laborers find jobs
frictional unemployment depends on what?
100
how the government collects and spends tax revenues
What is fiscal policy?
200
price floor
What is a governmental price minimum?
200
wages, investments, and taxes
what are the three primary expenditures of firms?
200
a period in which GDP is rising from the previous time period
What is the expansion period?
200
having workers that are willing but unable to work due to having skills that don't match the jobs available
What is structural unemployment?
200
direct tax
What is a tax that is unavoidable?
300
inelastic
If a good or service has few substitute goods, then it is said to be relatively
300
deferred consumption
What is another name for household savings?
300
contraction; trough
What is is called when an economy is recessing from the previous time period, and what is its lowest point called?
300
number that compares employment with unemployment insurance claims; unemployed divided by the employed
what is the actual rate of unemployment?
300
measures how the burden of an indirect tax is paid
What is tax incidence? what does it measure?
400
surplus
What happens to inventories when the quantity supplied exceeds the quantity demanded
400
the outputs market
in what market do firms make investments into capital?
400
to measure actual changes in productivity, not just changes in prices
Why do we adjust for inflation?
400
the economy is below the trend line
When the actual rate of unemployment is more than the natural rate of unemployment, what can be said about the economy? in regards to the business cycle model
400
increase in demand or a decrease in supply
why do prices rise?
500
the amount by which the quantity changes when there is a change in demand
define and describe price elasticity of demand
500
the economy is slowing down; firms will increase production by hiring more workers and investing into capital; house holds will get more income
if there is an expected increase in a firms inventory, what can we tell is happening to the economy; what will firms do in turn, and subsequently, how does that affect households?
500
arbitrary but logical
predictions based on the patterns in the business cycle model are said to be what?
500
previously have been employed; left employment involuntarily; actively seeking employment
What are the three criteria for unemployment?
500
cost push inflation
What is unanticipated inflation?
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