GDP, Unemployment
Banking
Monetary Policy
Fiscal Policy
Multipliers, Crowding Out, and Loanable Funds
100
The GDP is comprised of investment spending, government spending, net exports, and this.
What is consumer spending?
100
The money multiplier is equal to the reciprocal of this.
What is the reserve requirement?
100

This branch of the Federal Reserve is in charge of OMO's.

What is the New York branch/ central bank?

100
Fiscal policy can only be conducted by this entity.
What is the government?
100
The spending multiplier is equal to this.
What is 1/MPS or 1/(1-MPC)?
200

If Pancho the expert video cassette maker is unemployed recently due to the advent of DVD's, his unemployment is of this type.

What is structural unemployment?

200
The maximum amount of money a bank can loan out is equal to this.
What is its excess reserves?
200
Expansionary Monetary Policy consists of decreasing the reserve requirement, buying bonds, and this.
What is decreasing the discount rate?
200
When contractionary fiscal policy is pursued and the government wishes to increase taxes but decrease spending, it acquires this.
What is a surplus?
200
An increase in this causes the crowding out of investment spending.
What is the interest rate?
300
The GDP does not include second hand sales to avoid doing this.
What is double counting?
300
If Carlos deposits $100 into his bank, and a bank deposits it into his checkable deposits, then this has just occurred.
What is a recomposition of the money supply?
300
This is the rate that the Federal Reserve charges to banks for overnight loans.
What is the discount rate?
300
If the government wants to change taxes appropriately to exactly close the gap, then it must take into account these.
What is the MPS and MPC.
300
When the US government increases spending, this happens to the loanable funds market.
What is the demand for loanable funds shifts right?
400
The natural rate of unemployment, found at the full employment level, is when there is none of this type of unemployment.
What is cyclical?
400
When an individual cashes a check in a bank, these increase.
What are checkable deposits and reserves?
400
Contractionary monetary policy serves to close the inflationary gap through doing this.
What is decreasing the money supply.
400
Expansionary fiscal policy entails decreasing taxes and increasing this.
What is government spending?
400
Crowding out has its most serious effects when this type of fiscal policy is pursued.
What is expansionary fiscal policy?
500

Part-time workers are not counted as this.

What is fully employed?

500
When a bank makes a loan, it is exchanging "new" money for this.
What is an IOU?
500
As the money supply increases, this decreases.
What is the nominal interest rate?
500
The goal of contractionary fiscal policy is to close this.
What is the recessionary gap?
500
The supply of loanable funds shifts right when individuals are more inclined to do this.
What is save?
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