Supply and Demand
A price ceiling set below the equilibrium price will result in this condition.
What is shortage?
The primary goal of both expansionary fiscal and monetary policy is to increase this.
What is aggregate demand (or GDP/output)?
The sum of consumption, investment, government spending, and net exports.
What is Gross Domestic Product (or GDP)?
GDP = C + I + G + NX
In this market structure, firms are price takers and can sell as much as they want at the market price.
What is perfect competition?
This professor conducts research on health care in developing countries, particularly AIDS in sub-Saharan Africa;development economics; and international trade theory.
Who is Prof. Shannon Mitchell?
The amount by which the quantity demanded of a product responds to a change in price.
What is Price Elasticity of Demand?
This is the primary tool the Federal Reserve uses for conducting monetary policy.
What are Open Market Operations (buying and selling government bonds)?
Any systematic process of evaluating the benefits and drawbacks of a decision.
What is Cost-Benefit Analysis?
A firm in this structure is the sole producer of a product with no close substitutes.
What is a monopoly?
This professor focuses their research on development and education, with a focus on educational choices, pedagogy and policy.
Who is Prof. Evelyn Nunes?
If the price of coffee goes up, this determinant of demand causes the demand curve for tea to shift to the right.
What is the price of a substitute good?
Discretionary fiscal policy involves changes in these two main government levers.
What are government spending (G) and taxes (T)?
The higher the price of a good, the greater will be the quantity supplied
What is the 1st Law of Supply?
A common characteristic of monopolistic competition is that firms engage heavily in this non-price activity to differentiate their similar products.
What is advertising (or product differentiation)?
This professor's research focuses on price and inflation: Price/Information Stickiness (Macroeconomics), Price Formation Mechanisms (Experimental Economics), and Charitable Giving (Experimental Economics).
Who is Prof. Oleg Korenok?
When the supply and demand for a good both increase, the equilibrium quantity will rise, but the effect on this value is ambiguous.
What is the equilibrium price?
This problem suggests that a budget deficit may raise interest rates and reduce private investment.
What is the crowding-out effect?
Situation where one party to a contract can take actions (or inactions) that pass the costs of its behavior onto the other party (ex: insurance coverage).
What is Moral Hazard?
The strategic interaction and interdependence among firms is a key feature of this market structure with only a few large sellers.
What is an oligopoly?
This professor conducts research on behavioral Economics, Experimental Economics, and Applied Microeconomic Theory. This includes studies on economic contests, non-standard markets, strategic communication, and expert advice.
Who is Prof. John Lightle?
A measure of how quantity demanded changes when consumer income changes, which is negative for inferior goods.
What is Income Elasticity of Demand?
The central bank's action of lowering the reserve requirement or the discount rate would have this effect on the money supply.
What is increasing the money supply?
The relationship that suggests there is a temporary trade-off between inflation and unemployment (hint: it's a type of graph).
What is the Phillips Curve?
The practice of charging different prices to different customers for the same product, even though the cost of production is the same.
What is price discrimination?
This professor researches macroeconomics and family economics, publishing awarding works like “Lifestyle Behaviors and Wealth-Health Gaps in Germany” and “Status Externalities in Education and Low Birth Rates in Korea.”
Who is Prof. Minchul Yum?