Unit 1
What is the loss of something to gain something else
A trade-off?
It is the percent of people in the workforce who are looking for a job but don't have one.
What is the unemployment rate?
The total amount of demand.
What is Aggregate demand?
The ability to turn something into cash quickly
What is liquidity?
The thing that never happens any time soon with a government budget and when taxes are more than expenditures.
What is a Budget Surplus?
A person or persons who purchase goods and services
What is a consumer?
This does not include no looking for a job or is below the age of 16.
Labor force?
What happened to the price level when consumer spending changes.
What is the Wealth Effect
It can be used many times without loss in value.
What is a Store of Value?
This is unlikely and is when expenditures equal taxes.
What is a Balanced Budget?
Two nations that hold comparative advantages trade in a mutually beneficial trade and can consume more than possible without the trading partner.
Quantifies the total value of money in a given period that a nation makes
What is Nominal GDP?
An economic factor that can change or course subsequent changes.
What is a multiplier?
The value of belief in the government.
What is Fiat Money?
The most likely scenario, What the US is in now.
What is a Budget Deficit?
Can also be called factors of production.
Economic Resources?
This is more fair and can be used for a universal standard of living.
What is Real GDP per Capita?
The difference between autonomous spending and total income.
What is Disposable Income?
All of the money that is available to the public.
What is Money Supply?
The difference between the Actual and Real outputs
What is an Output Gap?
If this did not exist then all of a nation's resources, trade, and people would be in a confusing mess and not easy to do business with or visit.
Entrepreneurship?
This is when the GDP is at the highest point in exceeds the expected inflation rate
What is a peak?
The control that a producer has over the cost of an item.
What is Pricing Power?
The people responsible for distributing money and credit in a nation.
What is a Central Bank?
The Quantity of value made by a nation over a period of time, counting for inflation.
What is Real GDP?