Show:
Basics
Supply & Demand
Unempl, GDP, Inflation
Aggregate Model
Fiscal Policy
100
The basic problem of economics is _________ .
What is scarcity?
100
This law states that as price decreases, the quantity demanded decreases.
What is the law of demand?
100
The types of unemployment are seasonal, structural, frictional, and ________ .
What is cyclical?
100
The shape of the long-run aggregate supply curve.
What is vertical?
100
Fiscal policy is conducted by the President and ______ .
What is the Congress?
200
The value of the next-best alternative is called the _____________ .
What is the opportunity cost?
200
The ____________ price is that price at which the quantity demanded equals the quantity supplied.
What is equilibrium?
200
An increase in inventories is counted as this part of GDP.
What is investment?
200
When actual output is greater than potential output, the economy has a(n) ___________ .
What is an inflationary gap (or a positive output gap)?
200
In conducting expansionary fiscal policy, the government either (increases/decreases) spending or (increases/decreases) taxes?
What is increases (spending), decreases (taxes)?
300

If a country can produce a good or service at a lower opportunity cost, than it is said to have a ___________________ .

What is comparative advantage?
300
When the price is below its market-clearing level, there will be a ___________ .
What is shortage?
300
Nominal GDP divided by real GDP x 100 is the formula for this.
What is the GDP deflator?
300
The short-run aggregate supply curve is upward-sloping because of this _________ .

What are sticky wages?

300
Fiscal policy aims to shift the _________ curve.
Aggregate Demand
400

Economic analysis that prescribes how the economy should work.

What is normative economics?
400
The five main factors that shift the supply curve are a change in: 

1. Technology, 2. the number of sellers, 3. government policies, 4. expectations, and _____________

What are input costs?
400
A high inflation rate imposes 3 types of costs:  menu costs, unit-of-account costs, and this.
What is shoe-leather costs?
400
The formula for the tax multiplier.
What is MPC/MPS?
400

Rules governing taxes and transfers that reduce the size of fluctuations in the business cycle without specific action by Congress.

What are automatic stabilizers?
500
If an economy is producing on its production possibilities curve, at the point that maximizes consumer satisfaction, it is achieving ______________ .
What is allocative efficiency?
500
A price _____________ is set above the equilibrium price and creates a persistent surplus.
What is floor?
500
Wages that are set above the equilibrium wage rate as an incentive for workers to deliver better performance.
What are efficiency wages?
500

The aggregate demand is downward-sloping because of the net export effect, the interest rate effect, and the ____________ .

What is the wealth effect?
500
Because expansionary fiscal policy can cause an increase in the interest rate, it can result in a phenomenon known as ______________ , when private investment declines because of the government action.
What is crowding out?