Is the production Possibilities curve upward or downward sloping?
100
x- quantity y- price
What are the labels of the x and y axis supply and demand graph?
100
quantity of output in current year x price of output in base year.
How do you calculate real GDP?
100
price of resources, productivity, government action that affects producers.
What are the aggregate supply shifter?
100
The currency decreases in value
what happens when a country's currency when it is depreciated?
200
Scarcity Forces Tradeoffs, Cost vs. Benefits, thinking on the margin, incentives matter, trade makes people better off,markets coordinate trade, future consequences count.
What are the 7 principals of economics?
200
price of resources, number of producers, technology, taxes and subsidies, expectations
What are the five supply shifters?
200
(Real GDP x Price Index)/ 100
How do you calculate nominal GDP?
200
Decrease government spending, increase tax.
What is contractionary fiscal policy?
200
decrease and increase because of inflation
How does inflation affect imports and exports?
300
Always working with full employment, always comparing two products, resources are fixed, technology is fixed.
What are the four assumptions of the production possibilities curve?
300
there is a direct relationship between price and quantity supplied
What is the law of supply?
300
The market value at the current price of a nation’s output of goods and services.
What is nominal GDP?
300
1/ mps or 1/(1-mps)
What is the government spending and investment multiplier?
300
Decreases because of inflation
What does inflation do to the value of the dollar?
400
The ability of someone to produce a good or service at a lower cost per unit that the cost at which anyone else can.
What is absolute advantage?
400
a change in quantity supplied.
What change will be caused by a change in price?
400
econd hand sale, non-market transaction, items not produced in current year, public transfer payments, private transfer, stocks and bonds
What is excluded from GDP?
400
-mpc/mps
What is the inflationary tax multiplier?
400
Tourism will cause the curve to increase.
How does tourism in a country affect the demand curve for currency?
500
The ability of someone to produce goods or services at a lower opportunity cost than anyone else.
What is comparative advantage?
500
Where the supply and demand curve intersect
Where can equilibrium be found on the supply and demand graph?
500
(weighted cost of base-period items in current- year prices)/ (weighted cost of base-period items in base-year prices) x 100
How do you calculate the consumer price index?
500
Government buying bonds (increase AD) and selling bonds (decrease AD).
What is open market operation and how does it affect the AD/AS graph?
500
X-quantity of currency1 y- Currency2/currency1
What is the x and y axis of a foreign exchange graph?