Law of Supply & Demand
What is the law of Supply?
As price Increases, Supply Increases
What is inflation?
When money loses value over time.
Who controls monetary policy in the US?
The Federal Reserve
Who controls fiscal policy in the US?
The Government/Congress/The House of Representatives
What is Mr. Hoyt's favorite flavor of monster?
Nitro Cosmic Peach
What is the law of Demand?
As price Increases, Demand Decreases
What is deflation?
When money gains value over time.
What letter represents government spending in the formula for calculating GDP?
G
What is the goal of expansionary fiscal policy?
To "speed up" the economy, promote more spending, or fight deflation
What's Florida's state bird?
The Northern Mockingbird
What is it called when the government doesn’t allow prices to go above or below a certain amount?
A price ceiling or price floor
What kind of tools do governments use to fight hyperinflation and deflationary spirals?
Monetary and Fiscal Policy
Increasing the reserve requirement is an example of which type of monetary policy?
Contractionary Monetary Policy
Tax cuts are an example of which kind of policy?
Expansionary Fiscal Policy
What college did Patrick Mahomes go to?
Texas Tech University
A decrease in the price of a related good will lead to what kind of shift?
A rightward demand shift or an increase in demand.
The Great Depression was an example of what?
A deflationary spiral
Lowering the discount rate is an example of which kind of monetary policy?
Expansionary Monetary Policy
Reducing government spending would be an example of which kind of fiscal policy?
Contractionary Fiscal Policy
What is the official state animal of Scotland?
The Unicorn
What is equilibrium price?
What are the FOUR steps of the Virtuous Inflation Cycle?
Prices rise, leading consumers to make purchases now rather than wait, leading to firms making more money, leading to rising wages, which causes prices to rise
What are the 3 functions of money?
1 Store of Value
2 Medium of Exchange
3 Unit of Account
What are some of the "externalities" of fiscal policy?
In order to pass fiscal policies, they have to become laws
In the US, that means they have to pass through Congress (and they have to start in the HOR)
That means they can take a long time to pass and might be politically motivated rather than economically motivated
What item is banned only during Halloween from 12am October 31st to 12pm November 1st in Hollywood California?
Silly String