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Fiscal Policy
Monetary Policy
AD/AS Model
Economic Indicators
Misc
100
The use of taxation and government spending to reach economic goals.
What is fiscal policy?
100
2 Types of expansionary monetary policy.
What are lower interest rates, lower R.R., increase money supply?
100
The result of real estate values skyrocketing.
What is increase in AD?
100
The maximum change in the money supply given new deposits of $10 million and a reserve ratio of 10%.
What is $100 million?
100
A combination of rising inflation and falling RGDP
What is stagflation?
200
Policy that will resolve a recessionary gap.
What is expansionary (lower taxes or increase gov't spending)?
200
The term given to 1 divided by the reserve ratio.
What is the money multiplier?
200
The result of a decline in the world price of oil.
What is an increase in AS?
200
Labor force divided by population.
What is the labor force participation rate?
200

Necessary, but not sufficient, to achieve economic development.

What is Economic Growth?

300

money payments made directly to the population.

What are (cash) transfers?

300
The favorite method to shrink the money supply by the Fed.
What is selling bonds through OMOs?
300
The reason why we have a distinction between short run and long run aggregate supply.
What is sticky wages/prices?
300

The new CPI when inflation in the year after the base year is 5%.

What is 105?

300
The function of money when it is used to purchase a car.
What is medium of exchange?
400
Policy used to close an inflationary gap.
What is contractionary (raise taxes/lower gov't spending)?
400
The result of lowering interest rates by the Fed.
What is increase AD?
400
The result of increases in interest rates.
What is a decrease in AD?
400
The formula that uses current year quantities and base year prices to calculate national income.
What is RGDP?
400
The market where businesses and households exchange labor for wages within the circular flow model.
What is the resource (or factors) market?
500
Discretionary fiscal policy may fail to stabilize the economy due to this.
What are lags in policy?
500

Policy where a central bank creates new money to buy government bonds and other financial assets.

What is Quantitative Easing?

500
The level of RGDP that the economy would produce if all prices, including wages, were fully flexible.
What is LRAS (potential output)?
500
Stocks, imports of foreign made goods, intermediate goods, American products manufactured outside the U.S.
What is spending not included in GDP?
500
The phase of the business cycle that follows a trough.
What is a recovery (expansion)?