Vocabulary Terms
This term refers to a sustained increase in real gross domestic product per capita.
What is Economic Growth?
Assuming a marginal propensity to consume of 0.8, this potential change in rGDP could be created from a $40 million increase in government spending.
What is +$200million?
To counteract an inflationary gap, the government could choose to do this to income taxes.
Adam Smith's "The Wealth of Nations" is the seminal work of this laissez-faire economic school of thought.
What is Classical Economics?
This is the only US State that grows coffee beans.
What is Hawaii?
A worker who is laid off from a job due to technological advancement would be referred to with this labor market classification.
What is structurally unemployed?
The unemployment rate in Scottville, where 6,000 people are old enough to work, 4,000 people hold jobs, 1,000 people are looking for work, and 1,000 people have given up on their job search.
What is 20%?
When facing a recessionary gap, the central bank may choose to utilize this open-market operation to restore long-run equilibrium.
What is buying bonds?
This author of "The General Theory of Employment, Interest, and Money" lends his name to the primary school of thought that we have studied this year.
Who is Keynes?
These two rivers act as (significant) national borders of the United States.
What is the Rio Grande AND the St. Lawrence?
This term refers to skills that workers develop through education and experience.
What is human capital?
Assuming a marginal propensity to consume of 0.75, this potential change in rGDP could be created by a $20 million increase in taxes.
What is -$60million?
Fiscal and Monetary policy do not effectively address this, a situation in which inflation and unemployment are both high at the same time.
What is stagflation?
Milton Friedman argued that economic growth could be achieved by small, regular, and predictable increases in this.
What is the money supply?
Measured by longitude, this is the Easternmost US State.
What is Alaska?
The costs that a business incurs when inflation forces them to regularly change the listed prices of their products.
What are menu costs?
It takes Alpha 20 hours to produce 1 car and 5 hours to produce 1 ton of wheat; it takes Beta 30 hours to produce a car and 10 hours to produce 1 ton of wheat. This country has the comparative advantage in producing wheat.
Who is Alpha?
Increased deficit spending by the government can lead to this, a situation in which individual consumers and small businesses can no longer afford to take out loans.
What is crowding out?
This is one of the two main policy tools advocated for by Supply-Side Economists.
What is lower taxes on businesses OR deregulation?
The only U.S. capital city that does not have a McDonald's within its city limits.
What is Montpelier, VT?
An accounting tool used to track the flow of money into and out of a country.
What is the balance of payments?
The labor force participation rate in Nova Scottia, where there are 50,000 people, 30,000 of whom are old enough to work. In that population, 12,000 people are currently employed, 3,000 are actively seeking a job, and the remainder are jobless but not seeking work.
What is 50%?
For the past decade and a half, the United States has operated under this type of reserve framework
What are ample reserves?
Kydland and Prescott developed this economic school of thought, which stressed the importance of leaving the economy alone during its natural ups and downs.
What is Real Business Cycle Theory?
A landlocked state doesn't touch an ocean, gulf, or bay, but to be "triple landlocked" -- like this US state -- you'd be three states away from the ocean on every side.
What is Nebraska?