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 ratio?
100
This it the relationship that the Phillips curve highlights.
What is inflation vs. unemployment?
100
Expansionary fiscal and monetary policies are characterized by these three actions.
What are increased government spending, lower taxes, and increased money supply?
100
If the government spends $10 billion and the MPC is .75, this is the change in output.
What $40 billion?
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?
200
The maximum amount of money a bank can loan out is equal to this.
What is its excess reserves?
200
The combination of Keynesian and classical theories (among others) created this.
What is the extended AS/AD model?
200
This is the thesis behind changes in money supply affecting the AD curve.
What is investment spending and consumption can change depending on higher or lower interest rates?
200
An increase in this causes the crowding out of investment spending.
What is the real interest rate?
300
The GDP does not include second hand sales to avoid doing this.
What is double counting?
300
Carlos deposits $100 into his bank, and a bank deposits it into his checkable deposits. If the RRR = 10% this is the maximum change in the money supply.
What is $900?
300
This occurs in the AS/AD model when inflation expectations are lowered.
What is a rightward shift in of the SRAS?
300
If the government wants to change taxes appropriately to exactly close the recessionary or inflationary gaps, then it must take into account these.
What are the MPS and MPC.
300
If the government increases taxes by $25 billion, this is the effect on the economy. MPC = .8 .
What is -$100 billion in output?
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
The Fed buys $1000 of bonds from a bank and the RRR = 20%. This is the maximum number of loans that can be created from this transaction.
What is $5000?
400
Shifts of these two curves are consistent with the PPF shifting.
What are the LRPC and the LRAS?
400
An economy is in LR equilibrium. This is the LR effect of expansionary fiscal policy.
What is an increased Price Level and no change in RGDP?
400
Crowding out has its most serious effects when this type of fiscal policy is pursued.
What is deficit spending?
500
Discouraged workers are considered to be this.
What is not in the workforce?
500
A $10000 deposit is made at a bank and the RRR = 25%. This is the greatest amount of a loan this bank can make.
What is $7500?
500
A leftward shift of the SRAS is consistent with this shift occurring in the Phillips Curve model.
What is the SRPC shifting rightward?
500
Contractionary monetary policy benefits the economy and hurts the economy. These are the two effects.
What are lower inflation and increased unemployment?
500
If real interest rates are higher in countries other than the US, this happens to the loanable funds market and the value of the currency for the US.
What is the supply curve will shift left (LF) and the currency will depreciate?