Unit 3 Vocabulary
Unit 3 Questions
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Unit 4 Vocabulary
Unit 4 Questions
100
The quantity demanded of all goods and services at different price levels, ceteris paribus
Aggregate Demand
100
The short-run aggregate supply curve will shift to the right when
prices of inputs decrease
100
10%
100
Anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region
Medium of Exchange
100
When the government spends more money than they take in each year is called a _________?
Deficit
200
The quantity supplied of all goods and services at different price levels, ceteris paribus
Aggregate Supply
200
The long-run aggregate supply curve will shift to the right when
investment increases
200
If the reserve requirement is 20%, this bank has _______ in excess reserves
$12
200
Narrowest measure of the money supply; all coins and paper bills in circulation, traveler's checks, checking account balances, and balances in credit unions
M1
200
"The Fed" refers to the....
Federal Reserve System
300
Budget Deficit
A shortfall of tax revenue from government spending
300
Which of the following best describes aggregate supply?
A schedule indicating the level of real output that will be produced at each possible price level
300
This bank has a reserve requirement of
4.5%
300
Savings plans that require savers to leave their funds on deposit for certain periods of time
Time Deposits
300
These are IOUs from the U.S. government to people that finance a little piece of the government's debt in exchange for a very small amount of interest
Government Bonds, or Securities
400
Decrease in government spending and/or increase in taxes to reduce economic growth
Contractionary Fiscal Policy
400
A rightward shift in the aggregate demand curve with a horizontal aggregate supply curve will cause employment and the price level to change in which of the following ways?
Increase Employment; No Change to Price Level
400
The reserve requirement at this bank is
20%
400
Under mixed public/private control; These are the banker s banks, no individuals allowed
12 Federal Reserve Banks
400
The exchange of goods and services without using money is known as...
bartering.
500
Crowding Out
The decrease in private expenditures that occurs as a consequence of increased government spending or the financing needs of a budget deficit
500
If Mr. Woodward's disposable income increases from $600 to $650 and her level of personal consumption expenditures increase from $480 to $520, you may conclude that her marginal propensity to
consume is 0.8
500
This bank can create up to _______ in the money supply
$100
500
The amount of money held in order to make transactions
Transaction Demand
500
Which of the following scenarios would cause the nation’s money supply to increase?
Lowering interest rates