Macro 1
This model believes that the economy is self-correcting in the long run, with minimal government intervention.
The Classical Model
The total market value of all final goods and services made in a country
GDP - Gross Domestic Product
_______ policy deals with policy from the federal reserve.
Monetary
In the classical model, the law that states "supply creates its own demand"
Say's Law
What is the state of Kentucky's nickname?
The Bluegrass State
What type of policy deals with government tax and expenditures
Fiscal
What is the difference between exports and imports called?
Net exports
The model that suggests the economy can become stagnant and requires government spending to stimulate demand.
Keynesian Model
This theory shows a negative relationship between unemployment and real GDP
Okun's Law
What is the capital of Kentucky?
Frankfort
The Keynesian model argues that fiscal policy is especially effective in periods of what?
Recession/economic downturns
The statement "Good money drives out bad money" refers to what theory/law
Gresham's Law
___________ unemployment is cause by predictibale annual demand shifts.
Seasonal
Unemployment caused by wages being kept high, limiting the number of available jobs, is referred to as __________.
Frictional
Kentucky's top agricultural commodity in cash receipts is __________
Poultry
The three functions of money are medium of exchange, store value, and __________.
Unit of account
This curve shows the inverse relationship between inflation and unemployment.
Phillips curve
The act of buying an item in one market and selling it at a higher price in another market in order to profit from the price differential in two markets is called ____________.
Arbitrage
What theory states that long-run growth is driven by internal factors, like human capital, innovation, and R&D - meaning government policy can influence long-term growth
Endogenous Growth theory (Romer)
The first annual Kentucky Derby took place in what year?
1875
During a recession, a major car manufacturing plant lays off 3,000 workers because consumer demand for new cars drops nationwide. What type of unemployment are these workers experiencing?
cyclical unemployment
What is an organization of labor that seeks to gain a degree of monopoly power in the sale of its services hoping to secure higher wages, better conditions, and other economic improvements for the members?
Union
An economic condition where an economy is facing relatively high rates of inflation, little or no growth, and high unemployment
Stagnation
A dairy switches to fully automated robotic milking systems, and many of the workers lose their jobs because they do not have the training or skills to work with the new technology. What type of unemployment are these workers experiencing?
Structural unemployment
The Kentucky Derby is one of three races in the Triple Crown, what are the other two?
Preakness and Belmont Stakes