Unit 1
What do you give up when you make a choice?
What is opportunity cost?
What measure totals all final goods and services produced in a country in a year?
What is GDP?
What curve shows the total spending on goods and services at different price levels?
What is aggregate demand?
What is a medium of exchange, store of value, and unit of account?
What is money
What policy involves changes in government spending or taxation?
What is fiscal policy?
What curve shows trade-offs between two goods and typically bows outward?
Define PPC and its shape.
What formula divides the number of unemployed by the labor force and multiplies by 100?
What is the unemployment rate formula?
What events might cause an increase in consumer confidence or investment?
What shifts AD right?
What is the portion of deposits that banks must keep and not loan out?
What is the required reserve ratio
What policy uses increased spending or tax cuts to fight recession?
What is expansionary policy?
Can you name a situation where resources are limited but wants are unlimited?
what is scarcity
What economic condition occurs when overall prices increase, and how is it tracked over time?
What is inflation and how is it measured?
What type of inflation is caused by higher input costs, like wages or oil prices?
What causes cost-push inflation?
How do you calculate the total increase in money supply from an initial deposit?
What is the money multiplier?
What is it called when government borrowing increases interest rates and reduces private investment?
What is crowding out?
What does it mean if an economy is producing inside its production possibilities curve?
what is not producing efficiently
How do you adjust GDP for changes in price level over time?
what is real vs nominal GDP
What are some examples of factors like wages or taxes that decrease short-run supply?
What shifts SRAS left?
What action can the Federal Reserve take to increase bank reserves and stimulate the economy?
How does the Fed increase the money supply?
What type of monetary policy involves raising interest rates and reducing the money supply?
How does contractionary monetary policy fight inflation?
Why does the production possibilities curve become steeper as you move along it?
What is the law of increasing opportunity cost.
What index tracks the price of a standard basket of consumer goods.
What is CPI
What vertical curve represents the economy's full employment output level?
What is long-run aggregate supply (LRAS)?
What tool allows the Fed to buy and sell government securities in the open market?
What are open market operations?
What fiscal tools automatically help stabilize the economy without new legislation?
How do automatic stabilizers work?