Jobby jobs
Income+ Spending
Fiscal Policy
AS/ AD/ LRAS
Macro Graphs
FOREX
Economic Growth
Measuring the Economy
Random Hodge Podge
PPC
100
Farmer Joe is unemployed during the summer because he cannot grow his crops. In this case, he is...
What is seasonal unemployment?
100
The ________ is the increase in consumer spending when disposable income rises by $1.
MPC
100
Two tools of fiscal policy
Taxation and spending
100
The government increases spending on roads and bridges through President Biden's American Jobs Plan. This shifts the ________ curve __________.
AD, right
100
Also called a recovery.
What is expansion?
100
This is the summary of the country's transactions with other countries.
What is the balance of payments (BOP)?
100
How would you calculate economic growth rate from one year to another?
Economic Growth Rate = (GDP year 2 - GDP year 1) / (GDP year 1)
new-old/ old
100
(2 words) The ______ is a measure of consumer purchases of goods and services, used to calculate the rise or fall of CPI
Market Basket
100
Name the Fed Chairman who was appointed by Jimmy Carter to fight inflation, eventually beating it under the Reagan.
"Tall Paul" Volker. Look how tall he is!
100
Point 1
What is underutilization of resources?
200
When the economy enters a recession and you are fired because of it you are...
What is cyclical unemployment?
200
Fill in the blank (2 words): A household's _______ is that household's income after paying taxes to the government and receiving transfer payments.
Disposable Income
200
When the Federal government spends more money than it has, this causes a....
What is a budget deficit?
200
The combination of inflation and falling aggregate output is called _______.
What is Stagflation
200
what would cause this?
Subsidy, tech change, or other AS shift
200
When one currency is able to buy more of a foreign currency.
Appreciation
200
Physical capital, natural resources, human resources, and entrepreneurship are all...
productive resources/ factors of production
200
The most widely used measure of the overall price level in the United States is the _______.
CPI
200
This is the year that the modern day FED was born
1913
200
Point 2
What is unattainable long term or overuse of resources?
300
If Joe, the Blockbuster video manager became unemployed due to the advent of streaming services, his unemployment was of this type.
What is structural unemployment?
300
The ________ is the increase in household savings when disposable income rises by $1
MPS
300
any fiscal policy which automatically increases the deficit during a contraction and automatically decreases the deficit during a period of expansion. They essentially help limit the effects of the business cycle.
What are automatic stabilizers?
300
A ship was temporarily stuck in the Suez Canal a couple years ago, raising commodity prices. This would shift the _______ curve ________.
SRAS, LEFT
300
Troughs; bring high unemployment and possibly deflation.
What is a recessionary gap?
300
Daily double- Determine the exchange rates for world currency
What is supply and demand?
300
Why do economies with low per capita incomes tend to grow faster than economies with high per capita incomes?
Catching up growth is easier than cutting edge growth (convergence)
300
Most economists believe the best way to gauge a nation's well being is to use this metric
GDP Per capita
300
What is the purpose of the FDIC?
Prevent bank runs, keep trust in the banking system (guarantees cash to 250K)
300
Movement from point 3 to point 4
Loss of production of Consumer goods for a gain in production of Capital goods. What is a Trade off?
400
You are going to college in New York City and do not have a job.
What is frictional unemployment?
400
If you divide the MPC/ MPS you get the
Tax multiplier
400
People who lose from unanticipated inflation?
Who are lenders?
400
Technological advancements, government actions, investment in capital stock
What are the LRAS shifters?
400
Analyze point A
what is increase output without increasing price level?
400
- Change in the interest rate for this country or other countries
- Change in the expected future exchange rate
- Change in anything that would make foreigners want to have more of this countries currency
What are shifters of supply of currency?
400
y = √k is a simple formula for a (2 words) _____________________
production function
400
If your wage doubles at the same time as the consumer price index goes from 100 to 300, your real wage:
a. doubles
b. falls
c. increases
d. stays the same
e. cannot be determined
b. falls (CPI tripled but your wage only doubled)
400
If the government spends $10 billion and the MPC is .75, this is the maximum possible change in output.
$40 Billion
400
Shift in the entire curve outward.
What is economic growth?
500
Type of unemployment you cannot have if you are in full employment/at NRU...
What is cyclical unemployment?
500
real interest rate ≈ nominal interest rate − inflation rate is called the (two words) ___________
Fisher formula (or equation)
500
Fed Deficit spending can take jobs away from the private sector, and raise interest rates for private investment
Crowding out
500
= GDP = C + I + G + XN
What is AD
500
Analyze B
What is increase output while increasing the price level?
500
Daily double: Change in tastes, income, price level, and interest rates
What are the four shifters of the FOREX?
500
What would cause point D to occur? What would cause point e?
unemployment (underused resources)
Trade for boats+trucks
500
The ______ measures changes in the prices of goods and services purchased by producers.
Producer price index (PPI)
500
In a "liquidity trap", expansionary monetary policy does not change this.
What is Interest rate
500
Straight curve or linear ppc
what is a Constant opportunity cost?