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36 Cards in this Set
- Front
- Back
on graph, if questions states Long-run, anticipated or rational expectations...the point will be:
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somewhere on LRAS line
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On a graph, when question states Sort-run, not anticipated or not rational expectation...the point will be:
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To the left or right and off LRAS line.
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3 criticisms of Keynesian
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crowding out, effect on supply, new classical
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Transfer $1000 from savings to checkings, m1 and m2 will be affected how?
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M1 increases
M2 unchanged |
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If nominal gdp rises from one year to the next then either____ or___or___ must be rising.
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output,general level of prices, or both
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What do economists mean when they say that a good is scarce?
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The amount of the good that ppl would like exceeds the supply freely availablefrom nature.
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Individuals make decisions at the____
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margin
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The opportunity cost of an action is_____
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the value of the best oppurtunity that must be sacrificed in order to take action.
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The economic way of thinking stresses that_____
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as the cost of an object increases, ppl will less likey to choose it
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The three major categories of resources are:
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physical resources, human resources, natural resources
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Criteria for rationing goods and resources must be established bc of:
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scarcity imposed by nature
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If an economy is operating at a point inside the ppf curve:
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its resources are being used inefficiently
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Does voluntary exchange create wealth?
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Yes, trade generally permits the trading partners to gain more of what they value.
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Property Value rights involve:
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the right to exclusive use, legal protection against those who wish to abuse, the right to transfer, sell ,exchange, or mortgage
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Which is most likely to shift the ppf curve outward?
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development of an improved technological method of production
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GDP is equal to
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c+i+g+(x-m)
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Which would be included in this years GDP:
a. the value of used car,at its sale price b. the value of a new domestic car, at its sale price. c.a sale of microsoft stock from one person to the next. |
b.the value of a new domestic car, at its sale price.
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If a used car dealer purchases a used car for $6,000, refurbishes it, and sells it for $8,000, the dealer____ and consequently___
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contributes value added = $2000, $2000 is added to GDP
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If a used car dealer purchases a used car for $6,000, refurbishes it, and sells it for $8,000, the dealer____ and consequently___
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contributes value added = $2000, $2000 is added to GDP
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Which would increase GDP of the US
a. a CA man buys a case of wine from a winery in France. b. A frenchman buys a case of wine from a winery in CA c.A californian spends $ on atrip in French Alps. |
b. A frenchman buys a case of wine from a winery in CA
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The primary value of real GDP is its ability to measure year to year changes in:
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real output
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New residential housing is counted in GDP as;
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investment good
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Greg, a US citizen, works only in Canada. The value that his labor contributes to US output is:
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included in US GNP, but not in Us GDP
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In GDP, government purchases include spending on goods and services by:
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local, state and federal gov't
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Suppose GDP deflator was 100 in 2004 and 102 in 2005, inflation for 2005 was:
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2%
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The definition of the unemployment rate is:
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the % of ppl in the civilian labor force who are not employed
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The period of growth in the real GDP between the trough of the business cycle and the peak is called
a. contractionary phase. b.boom c.expansionary phase d.stationary phase |
a. contractionary phase.
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If US net exports are positive, then US consumers are spending___than___
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more on foreign goods; foriegn consumers are spending on US goods
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Which is a postive economic statement:
a. an increase in miniimun wage will reduce employment. b.the minimum wage should be increased c.thoughtful ppl oppose an increase in minimum wage |
a. an increase in miniimun wage will reduce employment.
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The real interest rate is equal to the _____minus_______.
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money interest rate, the inflationary premium
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The 4 key markets that coordinate the circular flow of income are:
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goods and services, resources, loanable funds, and foriegn exchange
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The exchange rate is
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the price of one currency in terms of another country
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The Keynesian analysis of fiscal policy implies that:
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the federal budget should be used to maintain AD at a level consistent with full employment
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Crowding-out refers to the situation in which
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borrowing by the federal gov't causes state and local gov't to lower thier taxes.
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countercyclical fiscal policy
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fiscal policy designed to increase AD during economic downturns & decrease AD during economic booms
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The Keynesian analysis of fiscal policy implies that
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the federal budget should be used to maintain AD at a level consistent w/ full employment
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