Basic Economic Concepts
What is Scarcity
This is one of the 3 major economic goals
What is promote economic growth, limit unemployment, or keep prices stable?
An increase in national production can shift the aggregate supply curve in this direction
What is rightward?
This is the percent of money that banks must hold by law
What are required reserves?
What is a trade deficit?
Land, labor and capital are prime examples of
This is the dollar value of all final goods and services produced within a country's borders in one year
What is GDP?
This is what is indicated by a point at the bottom of the Long-Run Aggregate Supply Curve
What is Full-Employment?
Digital currency is considered apart of this form of money?
This is the change in value of a country's currency when exports increase and imports decrease.
What is depreciation?
This law is represented by a downward sloping line that is concave down on the PPC
This is something not included in GDP
In the Long-Run Aggregate Supply curve, this is the change in GDP resulting from an increase in price level.
What is No Change?
This is a system in which goods and services are traded directly. There is no money exchanged
What is the barter system?
An increase in relative income of a country will have this effect on the value of their dollar
What is appreciation?
The producer with the lowest opportunity cost has this
What is comparative advantage?
This is the resulting effect of a negative supply shock
What is inflation?
This is the term associated with a leftward shift of the aggregate supply curve
This is the open market operation necessary to decrease the money supply
What is the FED sells bonds?
When the Net Capital Outflow exceeds the Net capital inflow, the current account is in this.
What is a surplus?
This is the resulting effect of an increase of price on shifts of the supply and demand curves.
What is No Resulting Shift?
This is the quantity theory of money identity formula
What is Money supply x velocity = price level x quantity of output?
A decrease in disposable income is representative of this policy to close an inflationary Gap.
What is contractionary Fisical Policy?
Expansionary monetary policy will have this resulting effect on investment
What is an increase in investment?
This is Tyler Turano's grade on his final project in AP Macroeconomics
What is an A+