Economics Flashcards: Supply & Demand Principles and Market Equilibrium

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Economics - Macroeconomics

andrsonztdc Created by 10 mon ago

Cards in this deck(43)

According to the law of demand, price and quantity demanded are _____ related.

When a consumer substitutes lower priced goods for higher priced goods, this is called the _____ effect.

For _____ goods, income and demand are inversely related.

Suppose peaches and nectarines are substitutes for each other. When the price of peaches rises, the demand for nectarines _____

When wages go up or down, taxes on businesses change, or technology gets better, these are all considered _____ of production.

The intersection of supply and demand yields the _____ price and quantity.

Assuming a market is originally in equilibrium, a decrease in demand would lead to a _____ in price and quantity.

Assuming a market is originally in equilibrium, a decrease in supply would lead to an _____ in price and a decrease in quantity.

If a government imposes a price floor in a market, this will lead to a _____

If the price of milk goes up dramatically, what happens in the market for cereal? The demand for cereal _____

Gross Domestic Product is best described as the market value of all goods and services produced in a given time period, usually _____

Nominal GDP is GDP measured at _____ market prices.

Real GDP is GDP at base year prices, or adjusted for _____

General Motors (a U.S. based firm) produces a car in Mexico and sells it in the United States. Which country's GDP is it included in? _____

Intermediate goods, like milk used in the production of cheese, are _____ in GDP.

The largest component of total expenditures is _____

In the base year, Nominal GDP is _____ Real GDP.

New technological innovation or an increase in capital would cause an increase in _____ productivity.

The clearest sign of economic growth is a(n) _____ in Real GDP.

The New Growth Theory emphasizes the role of _____ in modern economic growth.

An increase in the overall price level is referred to as _____

The variable we use to measure inflation is called the _____

Suppose the CPI in 2010 was 218.1. The CPI in 2011 was 224.9. What was the inflation rate? _____

Out of 238 million people aged 16 and older, 148 million had paying jobs, 9 million did not have jobs but were actively looking for work, and 3 million stopped looking for employment. The labor force is _____ million.

Out of 238 million persons aged 16 and older, 148 million had paying jobs, 9 million did not have jobs but were actively looking for work, and 3 million stopped looking for employment. The unemployment rate is _____

Someone who is unemployed because their skills are no longer needed or having been replaced by automation is experiencing _____ unemployment.

If the actual unemployment rate is 6% and the natural unemployment rate is 5%, then the cyclical unemployment rate is _____

Sally graduates with a degree in engineering. After searching for 3 months, she finds a job doing mechanical engineering work. For those 3 months, she was experiencing _____ unemployment.

Inflation _____ the buying power of people who hold money.

The _____ interest rate is equal to the real interest rate plus the expected rate of inflation.

Increasing personal income tax rates and raising of interest rates makes the Aggregate Demand curve _____

Suppose company XYZ can invest in new technology that will cost $60,000 and will generate additional profits of $6,000. The rate of return is _____

A decrease in wages will cause the SRAS curve to _____

The usual results of a beneficial supply shock are a fall in the price level and a rise in _____

Most of our economic growth comes with increases in productivity. This will cause the _____ curve to shift.

The intersection of AD and SRAS yields the _____ price level and level of RGDP.

_____ is the level of RGDP being produced when the actual unemployment rate is equal to the natural unemployment rate.

If equilibrium Real GDP is greater than Natural Real GDP, then the economy is in an _____ gap.

According to the classical school of thought, a market economy is able to return to Natural Real GDP without _____

According to the classical school of thought, the self-regulating mechanism when an economy is in an inflationary environment comes from a _____ of labor that causes _____ to rise and the SRAS will decrease over time.

Equilibrium GDP in the Keynesian model can be found at the intersection of the _____ curve and the 45 degree line.

One potential problem with fiscal policy is the bias towards _____ fiscal policy regardless of where we are in the business cycle.

According to Keynesian theory, when equilibrium Real GDP is greater than Natural Real GDP, the government's budget should be in a _____

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Economics Flashcards: Supply & Demand Principles and Market Equilibrium

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