Fiscal Policy
Monetary Policy
Free Trade
Trade Protection
Exchange rates
100
the results of adding C+I+G+(X-M)
What is Aggregate Demand
100
the price of borrowing money
What are interest rates?
100
This exists when on country is more productively efficient at producing a good than another.
What is Absolute Advantage?
100
a tax on imports
What is a tariff?
100
The effect on a freely floating currency of an increase in the nation's interest rates.
What is an appreciation?
200
When a governments expenditures exceed revenues
What is a budget deficit
200
the amount of customer deposits a commercial bank must keep with the central bank.
What is the Reserved Requirement?
200
This exists when one nation produces a goods or service at a lower opportunity cost than another.
What is Comparative Advantage?
200
When government pays some of the costs of production for firms that are exporting the good to other nations
What is export subsidy?
200
This is when a nation "fixes" is exchange rate to one other nation?
What is a currency peg?
300
the time of unemployment that increases during a recession
What is cyclical unemployment?
300
The amount of unemployment that would be expected with the economy is producing a full potential level of GDP.
What is the natural rate of unemployment?
300
This organization exists to reduce barriers to trade world wide.
What is the World Trade Organization?
300
Restricts the quantity of goods that may be imported.
What is quota?
300
when a nations exports exceed its imports
What is Current Account Surplus?
400
Determines the ultimate amount of increased GDP that would result form an increase in Government spending.
What is the Keynesian multiplier?
400
A monetary policy used to specifically reduce borrowing and ultimately reduce AD in response to inflationary pressures.
What is an increase in interest in interest rate? (could also accept decrease in money supply to increase i)
400
This is preferred method of trade protection of the WTO
What is a tariff?
400
A trade protection that lowers prices for consumers.
What is an export subsidy?
400
the average price of exports / the average price of imports x 100
What is "terms of trade"?
500
The primary reason why the Keynesian AS curve has a horizontal section.
What are downward sticky wages? OR : What what are inflexible costs / prices?
500
The central banks buying/selling of securities in order to alter the supply of money.
What are open market operations?
500
Was the international organization that promoted free trade prior to the formation of the WTO.
What is the General Agreement on Tariffs and Trade (GATT)
500
The economic law that explain why domestic producers will increase quantity when a tariff is imposed.
What is the law of supply?
500
When a central bank restricts the amount of foreign currency than can be bought by the residents of a nation.
What are capital controls?
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