Unit 1
What is the fundamental problem of limited resources and unlimited wants?
What is scarcity?
What measures the total value of goods and services produced in a country?
What is GDP?
What curve shows the relationship between the price level and output demanded?
What is aggregate demand?
What is anything generally accepted as payment?
What is money?
What policy uses government spending and taxes to influence the economy?
What is fiscal policy?
What do you call the next best alternative that is given up?
Define opportunity cost.
What is an example of a stage in the economic cycle such as expansion or recession?
Name one phase of the business cycle.
What does the abbreviation SRAS represent in macroeconomics?
What is Short Run Aggregate Supply?
What is the central bank of the United States?
What is the Fed?
What term refers to economic changes that occur after full adjustment of wages and prices?
What does “long-run” mean?
What graph shows trade-offs and efficiency in production?
What is a PPC used for?
What is the general rise in price levels over time called?
What is inflation?
What usually happens to output and price levels when aggregate demand increases?
What happens when AD increases?
What is the portion of deposits banks must keep and not loan out?
What is a reserve requirement?
What is the unemployment rate when the economy is at full employment?
What is the natural rate of unemployment?
What are land, labor, and capital examples of?
Name the 3 factors of production.
What percentage of people in the labor force are without jobs but actively looking?
What is the unemployment rate?
What factors like consumer confidence, taxes, or investment affect the AD curve?
What shifts aggregate demand?
What is a type of loan investment that pays interest over time?
What is a bond?
What happens to output and inflation in the long run if the government increases spending?
What happens with expansionary policy in the long run?
What term describes the additional benefit or cost of one more unit?
What does "marginal" mean?
How do you distinguish between GDP that accounts for inflation and one that doesn’t?
Define real vs. nominal GDP.
What is 1 / (1 - MPC), the formula used to calculate how spending multiplies in the economy?
What is the spending multiplier formula?
What is 1 / reserve requirement, the formula that shows how much money can be created by banks?
What is the money multiplier?
What is it called when government borrowing raises interest rates and reduces private investment?
What is crowding out?