Macro (Part 1)
Macro (Part 2)
International #1
International #2
Misc.
100
Define Full Employment (#9)
When there is no or very little cyclical unemployment.
100
What is the job of the Federal Reserve System? (#9)
To make monetary policy.
100
Define Imports and Exports. (#8)
Imports: goods that are brought from other countries to be sold. Exports: goods that are sent to other countries to be sold.
100
What is a tariff? (#12)
Trade barrier; a tax on imports.
100
List the four different types of unemployment. (Macro, part 1 #6)
Frictional, Structural, Cyclical, and Seasonal
200
Who is part of the labor force? Who is not? (#7)
People who are employed or unemployed and look for a job are part of the labor force. People who are unemployed and not interested or looking for a job are not part of the labor force (retired, stay-at-home parents, etc).
200
What is the difference between deficits and debt?
Deficits are when the the government spends more money than it has. Debts are the money that the government borrows from others to pay for its deficits.
200
Define appreciation and depreciation. (#22)
Appreciation: a rise in the value of a nation's currency. Depreciation: a decrease in the value of a nation's currency.
200
Define protectionism. (#13)
The use of trade barriers to protect one's economy from foreign competition.
200
Define embargo, quota, standard, and subsidy. (International #12)
Embargo: a restriction on trade with a specific country Quota: a limit on the amount (quantity) of a specific good that is imported Standard: a limited on the quality of goods being imported Subsidy: when the government gives companies money to help to benefit the public good
300
What do you add together using the expenditure approach to calculate GDP? (#2)
Consumer purchases, Government Purchases, Business Investments, and Net Exports
300
What are the three goals of fiscal and monetary policy?
The goals are full employment, price stability (controlling inflation), and economic growth (increase in real GDP)
300
When a country's exports are more than its imports what is this called? What if it's imports are more than its exports? (#9-10)
Trade surplus Trade deficit
300
Why does comparative advantage lead to specialization? (#3)
Comparative advantage leads to specialization because when countries have a comparative advantage they are able to specialize in a specific good and produce it more efficiently.
300
What is the advantage of free trade? (International #20)
Free trade allows for countries to buy quality imports at lower prices.
400
What does the equilibrium point on an aggregate demand and aggregate supply graph tell you about an economy? (#17)
It tells you the Real GDP and the average Price Level of an economy.
400
What are the two tools of fiscal policy and how do they each fit under the two different types? (#6)
Taxes and Government Spending EXPANSIONARY FISCAL POLICY: lowering taxes and increasing government spending CONTRACTIONARY FISCAL POLICY: raising taxes and decreasing government spending
400
What countries are a part of NAFTA? (#18)
USA, Mexico, Canada
400
What happens when the demand for a currency goes up (In terms of value, exports, and imports)? (# 23)
Value of the currency goes up, exports go down, and the imports go up.
400
Draw and label the business cycle. What is happening at each point in terms of unemployment, inflation, and real GDP. (Macro, part 1 #21)
Peak Contraction (prices go down, unemployment goes up, and real GDP goes down) Trough Expansion (prices go up, unemployment goes down, and real GDP goes up)
500
What would cause an aggregate demand curve to shift to the right (or increase) and what effect would this have on the economy? (#19)
An increase in Consumer or Government or Business spending would cause the aggregate demand curve to shift to the right (or increase). This would cause the average Price Level and the real GDP to increase in the economy. (unemployment would most likely go down)
500
What are the three tools of monetary policy and how do they fit under the two types (expansionary and contractionary)? (#11)
Open Market Operations (buying and selling bonds), Discount Rate, Reserve Requirement EXPANSIONARY MONETARY POLICY: buying bonds, lower discount rate, lowering reserve requirements CONTRACTIONARY MONETARY POLICY: selling bonds, raising discount rate, raising reserve requirements
500
Turn to page 459, and use the exchange rate table found there. One U.S. Dollar could buy how many Mexican Pesos, Euros, and Canadian Dollars? (#26)
10.66 Mexican Pesos, .884 Euros, 1.391 Canadian Dollars
500
Using the same table, 1 Chinese Renminbi could buy how many U.S. Dollars? (#27)
.121 U.S. Dollars
500
If a company in California sold microchips to a Japanese company in Japan for Japanese Yen, why would the company need to exchange the Yen for dollars? (International #25)
In order to pay their workers, pay for rent and pay for production in the U.S.
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