THEORIES AND THINKERS
This economist, also known as the "Father of Modern Economics", is most known for his work "The Wealth of Nations"
Adam Smith
The current chairman of the Board of Governors
Jerome Powell
The total value of all goods and services produced within a country's borders in a specific time period
Gross Domestic Product (GDP)
The study of how individuals and firms make decisions regarding the allocation of resources
Microeconomics
The total value of a country's exports minus its imports
Trade Balance or Net Exports
This British economist advocated for government intervention to reduce the amplitude of business cycles, also known as Keynesian Economics
John Maynard Keynes
The current upper Fed Funds Target Rate (As of Nov. 2023)
5.50%
This economic indicator measures the average change over time in the prices paid by consumers for a basket of goods and services
Consumer Price Index (CPI)
This economic concept states that as the price of a good increases, the quantity demanded for that good decreases, all other factors being equal
Law of Demand
This organization provides financial and technical assistance to developing countries for development projects
This economist proposed that the main responsibility of a business is to maximize its revenue and increase returns to shareholders, also known as the _______ Doctrine
Milton Friedman (Friedman Doctrine)
What is the main tool used by the Federal Reserve to influence short-term interest rates in the economy?
Open Market Operations
The situation where the general price levels are declining
Deflation
This market structure features a large number of small firms producing identical products with easy entry and exit
Perfect Competition
This economic theory advocates for unrestricted international trade to benefit all participating countries
Free Trade Theory
These 2 economic thinkers are most known for their groundbreaking work in cognitive biases, setting the stage for behavioral economics
Daniel Kahneman & Amos Tversky
This term refers to the Fed's communication strategy that can provide explicit or implicit hints toward future monetary policy, often associated with terms such as "Hawkish" or "Dovish"
Forward Guidance
The curve representing the inverse relationship between unemployment and inflation
The Phillips Curve
What type of goods experience increased demand when consumers' income decreases?
Inferior Goods
This theory proposed by David Ricardo, laid the groundwork for international trade
Comparative Advantage
An economist known for his theory of "rational expectations" in macroeconomics, suggesting that people make predictions based on all available information
John Muth
The number of scheduled FOMC meetings per year
8
A situation in which the economy's overall price level is rising rapidly while economic activity is slowing down
Stagflation
In an oligopoly market structure, this term describes a formal or informal agreement among a few firms to coordinate prices or production to limit competition and/or supply
Collusion or Cartel
This term describes the practice of exploiting price differences of the same asset in different markets to make a profit without risk
Arbitrage