Macro Vocab
Fluctuations in economic activity, such as employment and production.
What is the business cycle?
The states and national governments split most power, but share others, and cooperatively govern the society.
What is cooperative federalism?
The equation for measuring GDP.
Bonus 200 points if you can CORRECTLY identify ALL of the variables.
What is GDP = C+ I+ G+ Xn?
C-consumption
I- business investments
G- government spending
Xn= (X-M) X- Exports; M- Imports
Power is more likely to become corrupt here.
What is elite democracy?
The study of how society(globally) manages its scarce resources.
What is macroeconomics?
What is opportunity cost?
The use of media to rally support and/or encourage pressure for the ideas the President wants.
What is Bully Pulpit?
The spending multiplier equation.
What is 1/(1-MPC)?
The first, second, and third articles of the Constitution(in order).
What created and gave the legislative, executive, and judicial branches power?
The rate of unemployment equation.
What is number of unemployed/number in the workforce x 100?
The relationship between price levels and the quantity of output that firms are willing to provide.
What is aggregate supply?
The use of government funds for projects designed to please voters, or legislators, and win votes.
When one favors a specific state, usually granting the candidate more money or support.
What is Pork-Barrel legislation?
An increase in taxes have this effect on aggregate demand.
Decrease AD, shift it to the left.
Written about the separation of powers and checks and balances. This document views the legislative branch as the most powerful since it creates laws.
What is Federalist 51?
Amish families sued by Wisconsin for taking their children out of school after the 8th grade, which was against state law.
The amendment affected by this case...
What is Wisconsin v. Yoder? What is the first amendment in relation to freedom of religion?
**DAILY DOUBLE**
When there is a sudden and drastic increase or decrease in a good or service across the entire economy.
MUST answer BOTH in order to get double bonus points.
What is inflation(increase)? What is deflation(decrease)?
The three types of Federal Grants AND how they work.
What is Categorical Grant: money given for a specific reason with strings attached, Block Grant: money given for a more broad purpose, and Un/Funded Mandates: orders given to the states(with or without money)?
Exists when Aggregate output is above potential output.
What is an inflationary gap?
Interest groups, congress, and the bureaucracy(agency).
What composes the Iron Triangle?
This is the inflation rate from 2012 to 2013.
Year CPI
2012 229.6
2013 233.0
What is 1.5%?
(233.0 − 229.6)/229.6 × 100 = 1.5%
It is during this period that the aggregate price level has no effect on the quantity of aggregate output.
What is in the Long-Run?
Explain the difference between federalist and anti-federalist and give at least one example(person) from each party.
Anti-Federalist: opposed the new Constitution, feared the new Constitution would erode fundamental liberties, and argued that the new Constitution was a class-based document serving the economic elite; Patrick Henry, George Mason.
Federalist: argued for ratification of the Constitution by writing the Federalist Papers; James Madison, Alexander Hamilton, John Jay
The total demand for final goods and services in the economy at a given time and price level.
What is aggregate demand?
The Bill of Rights, in order.
First amendment: establishes freedom of religion, press, speech, petition and assembly.
Second amendment: the right to keep and bear arms.
Third amendment: restricts the quartering of soldiers in private homes.
Fourth amendment: protects against unreasonable/unwarranted search and seizure.
Fifth amendment: prohibits government from forcing individuals to testify against themselves, AKA due process.
Sixth amendment: the right to counsel, and having a speedy and public trial.
Seventh amendment: the right to a jury of peers.
Eighth amendment: forbids cruel and unusual punishment.
Ninth amendment: protects freedoms and rights, even if they are not directly listed.
Tenth amendment: specifies that powers not delegated to the national government are reserved for the state government or the people.
Legislation by the U.S. Congress in December 1807 that closed U.S. ports to all exports and restricted imports from Britain
What is the Embargo Act?