Chapters 1-3
The value of the next best choice.
What is opportunity cost?
The cause of Cyclical Unemployment visible with the AD-AS model.
What are Business Cycles?
The focus of policy for Classical Economists.
What is Supply?
What is Crowding-Out?
The primary source of government revenue.
What are taxes?
The model used to illustrate combinations of outputs a society can produce if all of its resources are being used efficiently.
What is production possibilities frontier?
The vertical axis of the AD-AS model records what variable?
What is Price Level?
What is Keynesian Economics?
The form of expenditure made when governments pay groups which return no good or service in return.
What are Transfer Payments?
The form of monetary policy used when the interest rate is raised.
What is Contractionary Monetary Policy?
What is Equilibrium?
This curve shifts when a country’s access to resources, technology, or institutions shift.
What is LRAS?
These prices do not adjust quickly to changes in supply & demand.
What are Sticky Prices?
The total amount a government owes to its creditors.
What is Federal Debt?
What is Owner’s Equity?
Law of all else being equal in economics model building.
What is Ceteris paribus?
This symbol represents the Natural Rate of Unemployment.
What is U*?
A change in this curve was responsible for the Coronavirus Recession of 2020.
What is SRAS?
These payments comprise spending that is adjustable during the annual budget process.
What are Discretionary Outlays?
The interest rate on loans between private banks.
What is the Federal Funds Rate?
The Five Foundations of All Economics.
What are Incentives, Trade-Offs, Opportunity Cost, Marginal Thinking, and Trade Creates Value?
What is International Trade Effect?
This three letter variable is the portion of additional income spent on consumption.
What is Marginal Propensity to Consume?
___ = 1 / (1 - MPC)
What is Spending Multiplier?
___ = 1 / Reserve Ratio
What is Simple Money Multiplier? (mm)