Basic Econ
Limited resources but unlimited wants & needs
What is Scarcity
Definition of a recession.
2 quarters or more of declining RGDP
An event that temporarily shifts the short run aggregate supply curve left of the LRAS
What is a supply shock?
Calculate the tax multiplier if the MPC is .9.
What is -9 tax multi. (spending multi is 10)
To calculate the Tax multi it's -MPC/MPS (Or 1 less than the spending multi and remember the tax multi is always negative because you are cutting taxes.
Definition: Comparing the value of one currency to another
What is exchange rate
What was the name of the first Disney princess?
Who is Snow White
This is the period of recovery after an economic downturn.
What is Expansion?
What is the relationship between interest rates and bond prices?
Inverse
The state of the economy that exists when aggregate output is above (greater than) potential output.
What is an inflationary gap
Draw and correctly label the Ample Reserves model showing an increase in Administered Rates.
See Graph
How does the value of a currency change when another country demands more of their products
What is appreciate
Buddy the Elf's four food groups.
Candy, Candy Canes, Candy Corn, and Syrup
The most valuable thing given up when making a decision.
What is opportunity cost
What equation is this: 1/MPS
What is the equation used to find the spending multiplier?
Combination of high unemployment coupled with rapidly rising price level.
What is Stagflation?
MPC is 0.8 and government increases spending by $50 Billion. What will happen to AD?
What is AD will increase by 250 Billion? (Shift Right)
What happens (shifts and what direction) to all of these models, LRAS, PPC, and LRPC, if there is a major increase in technology and business Investment?
What is the LRAS and PPC will shift RIGHT showing an increase in potential output and the Long Run Phillips Curve will shift Left showing a decrease in the natural rate of unemployment.
What made Frosty the Snowman come alive?
What is "an old silk hat"
What are points that are ON THE LINE/CURVE?
What is the equation for the "exchange" formula (Quantity Theory of Money)?
MxV= PxQ or MxV=PxY
What is it called when the SRAS curve increases or decreases back to equilibrium on its own?
What is self correcting?
Expansionary Fiscal policy leads to increase _________ in the loanable funds market. Which causes interest rates to ___________. This decreases loans for _______ & ________.
This situation is called ________________
What is demand, increase, Consumers and business Investment, and crowding out?
Ethiopian fruits become more popular in America. What happens to the Ethiopian currency? What happens to the American? Explain by telling me what shifts (supply or demand) for which currency, and which currency will appreciate and which will depreciate.
Ethiopian currency will increase in demand and will cause the currency to appreciate
American currency will increase in supply and will cause the currency to depreciate
In the classic "A Christmas Story" what does Ralphie want more than anything?
An official Red Ryder Carbine Action 200-shot Range Model Air Rifle (or BB gun)
On the PPC graph, an increase in unemployment could be represented by a movement to what part of the model?
What is movement to a point INSIDE the curve?
This type of unemployment describes a person who is unemployed because of a recession.
What is Cyclical Unemployment?
Curve that is used to measure potential output.
What is Long Run Aggregate Supply curve?
Susan makes a $100 deposit at City Bank. Their current reserve requirement is 10%. What is the change to the money supply based on Susan's deposit?
What is $900 increase
Santaland has been exporting toys to the Isle of Misfit Toys, so much so they have a trade surplus with them. What is happening in BOTH Santaland's and Isle's CA & CFA accounts?
Santaland has a surplus in CA, deficit in CFA
Isle of Misfit Toys has a deficit in CA, surplus in CFA
What city does the holiday classic "A Christmas Carol" take place in?
What is London
In Velaris for every 1 chocolate pie being produced they could have made 2 apple pies. In Genovia for every 1 chocolate pie being made they could have made 4 apple pies. Who has the comparative advantage?
What is Velaris
Calculate 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%
What is C+I+G+Xn
The United States GDP fell short by $60 billion. The current MPS is 25%. The government isn't sure which policy to go with to ...How much would Taxes AND Government spending have to change to correct this negative output gap?
Decrease taxes by $20 Billion
Increase spending by $15 Billion
What happens to exports, imports and foreign investments when a currency appreciates?
Appreciate= Exports decrease, imports increase and foreign investments increase
Highest grossing Christmas film of all time adjusted for inflation.