Macroeconomic Theory
This is the total market value of all final goods and services produced within a country in a given year.
What is Gross Domestic Product (GDP)?
This 17th-century Dutch craze saw single flower bulbs sell for more than 10 times a skilled worker's annual income.
What is Tulip Mania?
This market structure has many buyers and sellers, identical products, and no barriers to entry.
What is perfect competition?
The invasion triggered the largest energy crisis since the 1970s and sent global inflation to 40-year highs.
What is the Russian invasion of Ukraine?
If the price of a product is $10 and the quantity demanded is 50 units, total revenue equals this amount.
What is $500?
This economic measure shows the percentage of the labor force that is actively seeking work but unable to find it.
What is the unemployment rate?
This U.S. president's 1930 protectionist tariff is widely blamed for deepening the Great Depression.
Who is Herbert Hoover (or what is the Smoot-Hawley Tariff)?
This is the additional cost incurred from producing one more unit of a good or service.
What is marginal cost?
This critical maritime chokepoint, through which roughly 20% of global oil passes, was closed in March 2026 following an escalating conflict between the U.S. and Iran.
What is the Strait of Hormuz?
If the price elasticity of demand is -0.5 and you increase price by 10%, total revenue will do this (increase, decrease, or stay the same).
What is increase?
This curve shows the inverse relationship between the unemployment rate and the inflation rate in the short run.
What is the Phillips Curve?
This Federal Reserve chair famously declared inflation "contained" in early 2007, just months before the financial crisis erupted.
Who is Ben Bernanke?
This concept occurs when a firm's average cost of production falls as it increases its output level.
What are economies of scale?
This is the current inflation rate (CPI)
What is 3.4%?
The GDP deflator for a country is 110, and the nominal GDP is $300T, this is the real GDP for said country.
This is the interest rate at which commercial banks lend reserve balances to other banks overnight in the U.S.
What is the federal funds rate?
This misguided policy response to the 1970s oil shocks involved wage and price controls, which led to shortages and black markets.
What are wage and price controls (or Nixon's price controls)?
In this market structure, a single seller dominates the market, facing no close substitutes and significant barriers to entry.
What is a monopoly?
The total length of the Covid-19 recesion (shortest recession in US History)
What is 2 months?
GDP is $20T, consumption is $12T, investment is $3T, government spending is $3.5T, and exports are $2.5T. Calculate the country's imports.
What is $1T?
This policy tool, used by central banks, involves buying or selling government securities to influence the money supply.
What is open market operations?
This 2008 investment bank's collapse is considered the largest bankruptcy in U.S. history and a key trigger of the global financial crisis.
What is Lehman Brothers?
This type of profit is earned when total revenue equals total cost, including opportunity costs, meaning the firm is earning exactly its normal return.
What is zero economic profit (or normal profit)?
This Chinese startup triggered a global sell of resulting in the greatest one day loss in market value for a single company of $589 billion (bonus points if you know the name of the company that lost said $589 billion)
What is DeapSeek?
EC - Nvidia
A firm's profit function is π = -Q² + 40Q - 100. Solve for the profit-maximizing quantity. (Hint, calculus may be helpful)
What is 20?