Business Cycle/Unemployment
Aggregates
GDP
Monetary Fiscal Policy
Grrrraph
100
When is the best time to invest during in relationship to the business cycle
What is Trough
100
This curve relates the aggregate output produced to the aggregate price level.
What is aggregate supply?
100
What are the categories that make up equation for GDP
What is Consumer Spending+ Investement Spending Government Spending + Net Exports
100
the two tools of fiscal policy are
What are Taxes and Government Spending
100
The US economy is experiencing a depression. A policymaker should favor a policy that ultimately causes this.
What is a shift to the right of aggregate demand?
200
Name 1 cause of structural unemployment
What is new technology, new resources, globalization, change in consumer demand, lack of education
200
This curve relates the quantity of aggregate output demanded by all entities in a country to the aggregate price level AND what is the equation to calculate aggregate demand
What is aggregate demand? and what is C+I+G+Xn
200
What is the GDP measured in current prices called?
What is Nominal GDP
200
Three tools of Monetary policy are
What is changing the discount rate, buying/selling bonds, and raising/lowering the reserve requirement
200
.
The economy is in a ________
What is we have an inflationary GDP gap,
300
Explain circular flow on a basic level
What is people provide labor to a business who gives them a wage. They then take that wage and spend it on items which puts money back in the business pocket and the cycle repeats
300
These are the two main shifters of the short-run aggregate supply curve.
What are changes in productivity and input prices?
300
What is the difference between nominal and real GDP?
What is Nominal is current prices. Real is expressed in constant, unchanging prices - ADJUSTED FOR INFLATION
300
First Person to hit the buzzer gets 300 free points
LETS GO
300
This is an example of a _______
What is a recessionary gap
400
What part of the business cycle has the highest unemployment
What is contraction/trough
400
The long-run aggregate supply curve generally has this shape.
What is a vertical line?
400
What is Real GDP in Y2 if Y2 is the base year?
What is 179
400
In the long-run, the economy is self-correcting because this occurs.
What is nominal prices change to reflect current output, shifting short-run aggregate supply closer to a long-run equilibrium?
400
If this was our current economy what tool did the government use to get into long run equilibrium? What happens to Real GDP and inflation when this happens?
What is contractionary fiscal or monetary policy
In doing so GDP decreased and Price level (inflation) decreased
500
Name and describe 3 of the 4 types of unemployment
Frictional Seasonal Structural Cyclical
500
Suppose wealth in the economy increases. The impact on the aggregate demand-aggregate supply model will be this.
What is a shift to the right of aggregate demand?
500
Wh
What is Real GDP in Y3 using Y1 as the base year?
What is 204
500
This shift in the graph could be caused by what monetary policy? I need the specific action
What is increase the discount rate, the Fed Selling Bonds, or Raising the reserve requirement
500
If this was our current economy what tool did the government use to get into long run equilibrium? What happens to Real GDP and inflation when this happens?
What is the government did nothing as Aggregate supply shifted. If the government did something aggregate demand would have shifted.
What happened is Real GDP increased and Inflation went down