Unit 1
Absolute Advantages
Implies as a product can be produced more efficiently
Demand
Consumers willingness and ability to purchase an item at ALL price points
Who controls Monetary
The Federal Reserve
Capital
Tools, equipment, machinery and factories used in products
Supply
Producers willingness and ability to produce an item at ALL price points
Who controls fiscal policy
The Government
Land
Natural resources: not created by people
Quantity Demanded
Consumers willingness and ability to purchase an item at a SINGLE price point
What are the tools of fiscal policy
Tax and spending
Labor
Human resource: People with all their effort, abilities, and skilled
Quantity Supplied
Producers willingness and ability to produce ab item at a SINGLE price point
The Unit State is experiencing both high inflation and high unemployment
Contractionary monetary policy
What is the product possibilities curve?
A PPC is a model that shows the maximum product of good/service an economy can produce
RENTS
Resource price
Expectations
Number of sellers
Technology
Subsidies
GDP dipped from 3 percent to 1 percent in the last year
Expansionary monetary policy