Open Economy
Inflation and Deflation
Adam Smith
The Great Depression
Other
100
An economy that does not trade goods, services and assets with other countries.
What is a closed economy?
100
The term used for rising aggregate price level.
What is inflation?
100
A term that refers to the self-regulation of the economy where individuals pursue their own interests.
What is the Invisible Hand?
100
A major event in 1929, often considered as the trigger for the Great Depression.
What is the Stock Market Crash?
100
The graph exemplifies this trend.
What is long run growth / long run trend?
200
A concern of a trade deficit.
What is the loss of jobs?
200
The term used for a constant aggregate price level.
What is price stability?
200
The term that refers to the economy working without government intervention
What are Laissez-Faire Economics?
200
This term refers to the contraction in economic activity during the Great Depression, leading to high unemployment rates and lower industrial production.
What is the Economic Recession?
200
If a country has balanced trade, its deficit is equal to it ____.
What are inflows?
300
Payments equaling receipts from foreigners.
What is the balance of payments?
300
There were short bursts of high inflation, the first being at the end of this war.
What is World War I?
300
The predominant economic system during Adam Smith’s time when the economy was stimulated by the accumulation of profitable balances
Mercantilism
300
The Great Depression had a strong global impact and caused this European country’s economic downfall, which contributed to the rise of Facism.
What is Germany?
300
The two times when monopolies are permitted
What is “Intellectual property” and “In the public interest”?
400
A possible side effect of an uncompetitive economy.
What is a nation without trade?
400
An average worker’s wage in 2001 earned this many times of an average worker’s wage in 1946, after correcting for higher prices in real terms. (2x, 3x, 4x, 5x)
What is three times?
400
The two books that Adam Smith wrote were The Wealth of Nations and this title.
What is the Theory of Moral Sentiments?
400
During the Great Depression there were few social safety nets– there was no social security or employment insurance. Families were evicted from their home and had to live in this area.
What is “Shantytown”
400
This cycle refers to the booms and busts of the economy.
What is the business cycle?
500
The classification that is used for the world economy.
What is a closed economy?
500
These two values correct for higher prices to get a straightforward picture.
What are real and nominal values?
500
This historical event contributed significantly to the development of modern philosophy and laid the groundwork for the principles of classical economics.
What is the Scottish Enlightenment?
500
The Great Depression led to a significant reduction in international trade. The U.S. passed a protectionist act that was imposed by this tool.
What are High Tariffs?
500
The top three goals of the Fed in no particular order.
What is “to achieve stable prices”, “low inflation”, and “maximum employment”?