Supply and Demand
The term for the amount of a good consumers are willing and able to purchase at a given price.
What is quantity demanded?
In perfect competition, firms are described as price ___
What is price taker?
The total value of all goods and services produced within a country's borders in a given year is called this.
What is Gross Domestic Product?
This type of policy helps to curb inflation and increase unemployment.
What is contractionary policy?
A decrease in the value of a country's currency relative to others is called this.
What is depreciation?
A movement along the demand curve occurs when this changes.
What is price?
In this market structure, a few large firms dominate and may engage in collusion to set prices.
What is oligopoly?
Inflation is measured by the annual percentage change in this price index.
What is Consumer Price Index?
___ government spending is an example of expansionary policy.
A strong domestic currency makes imports do this.
When the market price is above the equilibrium price, this occurs, causing downward pressure on prices.
What is surplus?
In perfect competition, economic profit in the long run is this amount.
What is 0?
This type of unemployment arises when workers’ skills do not match the jobs available.
What is structural unemployment?
Assuming ample funds, a central bank buying more US Treasury bonds ____ the policy rate?
What is does not affect?
When a currency depreciates, exports from that country typically do this.
What is increase?
If demand for a good rises following a decrease in income, the good is classified as this type of good.
What is inferior good?
The condition where a firm produces at the lowest point on its average total cost curve is ___ efficiency.
The formula for the quantity theory of money states that money supply times velocity equals this.
What is nominal GDP?
The Phillips Curve suggests a trade-off between these two economic variables in the short run.
What is unemployment and inflation?
The official currency of Switzerland is the ___?
What is Swiss franc?
If the cross-price elasticity for two goods is negative, the goods are classified as ___.
The Herfindahl-Hirschman Index (HHI) measures this aspect of a market.
What is market concentration?
The term for money whose value derives only from government decree and has no intrinsic value.
What is fiat money?
This phenomenon occurs when government borrowing leads to higher interest rates, reducing private investment.
What is crowding out?
This type of exchange rate system allows currencies to fluctuate according to market forces without direct government control.
What is a floating exchange rate system?