This is the unemployment rate if there are 200 people in the labor force, and 20 are unemployed.
What is 10%?
100
Adam Smith wrote this great book in 1776.
What is Wealth of Nations?
100
This was the dominant school of economic thought before the 1930's.
What is classical economics?
100
If full employment is $400 and the economy is producing $200, classical economists believe this should occur.
What is "Do Nothing!"?
100
According to Keynes, because prices and wages are not flexible, this could be the result for the economy.
What is "Getting Stuck" below or above full employment and in need of manipulation?
200
This is the inflation rate if the CPI in year 1 is 140 and in year 2 is 190.
What is 36%?
200
This economic event challenged the traditional way of economic thinking away from the classical perspective.
What is the Great Depression?
200
This French economist coined the phrase "Supply creates its own demand."
Who is Jean Baptiste Say?
200
If the MPC is 0.80, this is the MPS.
What is 0.20?
200
According to Keynes, this government action will have the greatest effect in manipulating the economy.
What is changing government spending?
300
This is the equivalent price of a gallon of gas now when it cost $1.80 in 1994. CPI in 1994 was 150 and in 2016 is 220
What is $2.64?
300
This group of 18th century individuals believed that the economic value of a nation came from the resources the nation possessed, in particular the land resource.
What are the physiocrats?
300
This school of economic thought believed in short-term interventions in order to manipulate the economy.
What is Keynesianism?
300
If the government increases its spending by $250 and MPC is 0.75, GDP will increase by this much.
What is $1000?
300
If the economy is producing $800 and full employment is $500, the government should change spending by this amount, according to Keynes, if the MPC is 0.85.
What is approximately -$179.64?
400
Given the following information, calculate GDP:
Consumption: $150
Wages: $270
Social Security: $35
Imports: $20
Government purchases:$80
Profits: $380
Exports: $60
Rental Income: $50
Investment: $220
What is $490?
400
This economist wrote a book called the General Theory of Employment, Interest, and Money in 1936, challenging the classical economic perspective.
Who is John Maynard Keynes?
400
These economists believed that, by influencing businesses, the economy can achieve full employment in the short run through a trickle-down philosophy.
What is Supply-side economics?
400
If government decreases taxes by $600 and MPC is 0.65, the GDP will change by this much.
What is -$1114.29?
400
If the economy is producing $900 and full employment is $1500, the government should change taxes by this amount according to Keynes, if MPC = 0.75.
What is -$200?
500
Given the following information, calculate the nominal GDP for 2015, assuming 1990 is the base year.
1990: 40 cars @$4000 each 20 pizzas @$5 each
2015: 50 cars @$5000 each 30 pizzas @$6 each
What is $250,180?
500
This individual developed the first concepts of our modern day GDP calculation, but claimed it shouldn't be used to measure a country's welfare.
Who is Simon Kuznets?
500
This economist wrote the Theory of Moral Sentiments in 1759, and was the foundation of economic thought for over 100 years.
Who is Adam Smith?
500
Given this information, this is the MPC.
Income = $0 Consumption = $400
Income = $500 Consumption = $700
What is 0.60?
500
This is the MPC if government spending increase of $200 caused GDP to increase by $500.