Whatever must be given up to obtain a good or service

This is a model of the movements of goods, services, resources, and money in an economy

the total supply of goods and services produced within an economy at a given overall price in a given period.

a system of exchange in which goods or services are traded directly for other goods or services without the use of money.

these policies include increased government spending, higher government transfers, or lower taxes. This makes the budget surplus smaller and the budget deficit bigger.

Limited nature of society's resources. Example: OIL

A good purchased for resale or for use in producing another good (not counted in GDP)

the use of government spending and taxation to influence the economy.

the money deposits held in banks or at the FED

This shows the relationship between the inflation and unemployment rate

A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good

unemployment that rises during economic downturns and falls when the economy improves

A macroeconomic situation in which both inflation and unemployment increase. Caused by a negative supply shock

reserve requirement, discount rate, open market operations (bonds) are tools used in this...

the accumulation of all past budget deficits + all past budget surpluses

Society getting the most out of its scarce resources

MV=PY is the equation for this

This occurs when income exceeds expenditures.

the buying and selling of government securities

This is a term for a decrease in investment that results from government borrowing

The ability of a country to produce a good at a lower opportunity cost than another producer

Increases in the price level due to a rise in the cost of production.

economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention.

nominal interest rate - inflation rate

measures the number of times that the average dollar bill is spent in a year (the ratio of nominal GDP to the money supply)