Economic Systems
This economic system is the one that every economy in the world utilizes.
What is a mixed economy?
This advantage is the one you have over your siblings in absolutely everything.
What is absolute advantage?
This price problem has been on everyone's mind since COVID.
What is inflation?
These are the 2 tools of fiscal policy.
What are taxes and government spending?
Monetary policy is the targeted manipulation of these rates.
What are interest rates?
This economic system prioritizes freedom and growth.
What is a market economy?
This trade barrier is a tax on imports that is very popular with the 19th century economists and the Trump administration.
What is a tarriff?
Someone that quits their job experiences this type of unemployment.
What is frictional unemployment?
This change to taxes could help lower inflation.
What is an increase in taxes?
Lowering interest rates would put us into this stage of the business cycle.
What is an expansion?
This economic system prioritizes equity and security.
What is a command economy?
Look at the board to determine who has the absolute advantage in the production of each good.
What is whatever Mr. White said?
Look to the board to calculate real GDP in year 2 with year 1 as the base year.
What is whatever Mr. White says.
When the government brings in less tax revenue than it spends, it definitely has this type of budget?
What is a budget deficit?
This is the economic indicator that caused the federal reserve to raise interest rates for the last few years.
What is inflation?
This economic system would have a hard time resolving market failures.
What is a market economy?
Describe the effect that trade barriers have on prices and variety.
What is an increase in prices and a decrease in variety?
This is the market where individuals sell their labor.
An increase in government spending would have this effect on inflation.
What is an increase in inflation?
Buying bonds would have this effect on the money supply and interest rates.
What is an increase in money supply and a decrease in interest rates?
These goods are provided by the government and are a key benefit to a command economy.
What are public goods?
This group tends to be the only one that benefits from trade barriers.
Who are domestic producers?
This type of unemployment has become a large concern with the advancements being made with AI.
What is structural unemployment?
An increase in taxes would likely have this effect on unemployment.
What is an increase in unemployment?
Doing this to interest on reserves incentivizes banks to hold onto cash rather than giving out loans.
What is increasing interest on reserves?