| Chapter 9 | Chapter 10 | Chapter 11 | Chapter 12 | Chapter 13 |
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What is the formula for aggregate demand?
C + I + G + (X - M)
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What are three main objectives of an economy?
Economic growth, low unemployment, and low inflation.
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What is real GDP per capita growth?
new RGDP - old / old X 100 =
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What is perfect income equality
The diagonal line on the Lorenz curve represents...
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What is the central bank?
A financial institution that determines the money supply, interest rates, and acts as a lender of last resort.
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What is short-run aggregate supply?
The total quantity of real output (real GDP) offered at different prices in the short run.
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What is unemployment?
People who are willing, able, and actively seeking jobs but cannot find work.
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What led to the debt crisis?
Wars in Iraq, Afghanistan, tax cuts, 2008 financial crisis, the affordable care act, and the pandemic all led to...
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What is greater income inequality
The higher the Gini coefficient number...
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What is the money supply?
The quantity of money available in the economy
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What are sticky wages?
Wages that don't adjust quickly to market conditions.
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What is the unemployment rate formula?
# unemployed / total labor force X 100
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What is the budget deficit?
When government spending is greater than government revenue
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What is absolute poverty
When citizens lack access to basic needs such as food, shelter
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What is monetary policy? (Will also accept - who is the Federal Reserve)
Policy that attempts to manage the economy by controlling the money supply and interest rates
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What is full employment?
When the economy is producing at full output.
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What is the appropriate rate of inflation?
2-3%
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What is a budget surplus?
When government spending is less than government revenue
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What is relative poverty
When citizens live below average income relative to a specific country
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What is fiscal policy? (will also accept "government" in the answer)
Policy that attempts to manage the economy by controlling taxes and spending
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What is LRAS (long-run aggregate supply)?
A type of supply that is dependent on factors of production (resources & tech) that are available in the economy.
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What is the CPI?
monthly changes in prices paid by consumers are measured and reported as:
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What is a balanced budget?
When government spending is equal to government revenue
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What is poverty?
Birth rates, Minimum Income Standards (MIS), GDP per capita, life expectancy are all ways of measuring...
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What are the goals of good monetary policy? (will also accept "economic growth")
Goals such as long-term growth and stability, low inflation, low unemployment.
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