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Unit 6
Unit 7
Unit 8
Unit 9
Unit 10
100
Peak, Recession, Trough, Expansion
What is the business cycle?
100
1/MPS
What is the spending multiplier?
100
The percentage of deposits that banks must retain
What is the reserve requirement?
100
The relationship between unemployment and inflation
What is the Phillips Curve?
100
A Japanese consumer purchases an American chair for her home and effects the balance of this account
What is the current account?
200
A measure of all final goods and services produced in a year
What is GDP?
200
-MPC/MPS
What is the tax multiplier?
200
The reserve rate is 10%. $15,000 has been deposited in Hansy Baby Bank. They lend out $10,000. How much excess reserves do they have?
What is $3,500?
200
The sum of all previous government deficits
What is the national debt?
200
A nations currency becomes weaker
What is depreciation?
300
Frictional, Cyclical and Structural
What is unemployment?
300
Government actions that affect aggregate demand
What is fiscal policy?
300
Name 2 of the functions of money
What are medium of exchange, store of value, and unit of account?
300
The Government borrows money and the interest rate increases, deterring normal people from investing
What is the crowding out effect?
300
When a country can produce a good at a lower opportunity cost than others
What is comparative advantage?
400
current year prices/base year prices X 100
What is price index?
400
A period of inflation and unemployment
What is stagflation?
400
Expansionary open market operations
What is buying bonds?
400
Government should take an active role in economic regulation
What is Keynesian economics?
400
How much of one currency you can purchase with another currency
What is the exchange rate?
500
The point when cyclical unemployment is zero
What is full employment?
500
The relationship between the tax rate and government revenue
What is the Laffer Curve?
500
See Diagram: Name the 3 things that the Federal Reserve could have done to achieve this result
What are lowering the reserve requirement, buying bonds, and lowering the discount rate
500
This line of economic thought discourages deficit spending in order to prevent crowding out
What is New Classical Economics
500
When a nation can produce more of a good than another nation
What is an absolute advantage?