Unit 1
Needs
What is something necessary for human survival?
GDP
What is the total value of all finished goods and services produced within a country in a specific time period?
Depreciation of an asset
What is the decreasing of an asset's value over time?
Asset
What is an economic resources with monetary value that an entity controls in order to receive future economic benefit?
Quantity Theory of Money
What is a theory that describes the relationship between the money supply and the price level?
Macroeconomics
What is the study of economics that covers the structure and behavior as the economy of a whole?
Unemployment rate
What is the amount of people unemployed/the labor force?
Expenditure
What is the act of spending money to acquire goods, services, and assets?
Representative money
What is a type of currency that has little to no intrinsic value?
Budget Surplus
What is when an economy's revenue is greater than its expenditures?
Absolute advantage
What is the ability for a country to produce more of a good or service with the same amount of resource?
Inflation
What is a sustained increase in the overall price level of goods and services?
Output gap
What is the difference between the actual and potential output of an economy?
Reserve ratio
What is the percentage of a bank's money it is required to keep in reserves?
Fixed exchange rate
What is when a country ties its currency to another country's currency?
Mutually beneficial trade
What is an exchange between countries where both have an advantage?
GDP deflator
What is a measure of the overall price level that converts nominal GDP to real GDP?
Aggregate demand shock
What is an unexpected/sudden event that causes a significant change in aggregate demand?
Money market
What is the market where borrowing and lending takes place?
GATT
What is the General Agreement on Tariffs and Trade?
Determinants of demand
What are non-price factors that influence demand?
Contraction
What is a phase of the business cycle that is characterized by economic decline?
Expansionary/Contractionary Fiscal Policy
What is a government response to a recession or period of inflation to bring the economy back to equilibrium?
Contractionary policy
What is a fiscal or monetary policy that aims to slow down economic growth and combat inflation?
Net exports
What is exports minus imports?