Macroeconomics Review (Chapters-1-11)

all else equal, technology improvements will lead to a decrease in supply.

Stagflation is a period of high inflation and high unemployment.

Study of how individuals, businesses, governments and societies make decisions in the face of scarcity

Which of the following is a true statement?

_______ are goods and services produced abroad and sold domestically

Gross domestic product (GDP) measures the size of total production outside of a country.

All of the following are true for AS (Aggregate Supply) except:

All of the following describe perfect elasticity except for

An outburst of high inflation is known as:

Productivity has no impact on the natural rate of unemployment.

In the goods and services market, firms pay wages, salaries and benefits to households for the labor provided.

Which of the following will have the greatest impact on most individuals:

In the circular flow diagram (goods & services market), firms offer labor services to households.

If quantity demanded or quantity supplied is highly responsive to a change in price, the good is considered elastic.

In the Labor Market, all of the following except for ____, contribute to the price:

When Qs > than Qd there is a

In 1870, GDP of top economies was _ times that of lower economies and by 1960, they were _ times that of lower economies

Which of the following individuals would be included in the Labor Force:

Keyne's Law is a good approximation in the short run.

Most industrialized nations trade balances are less than __ of their GDP.

All of the following are factors that affect the SUPPLY for coffee except for

The loss in social surplus that occurs when the economy produces at an inefficient quantity is known as:

allocative efficiency represents the choice or choices most desired by society

An example of a unilateral transfer is

Taxes are the key to minimizing structural unemployment.

Adam Smith first introduced the concept of the _______________, which highlights how specialization increases production

Term to describe when human wants for goods and services exceed the available supply

A change in price always moves the supply curve.

A country that runs a trade deficit is economically unhealthy.

The trade balance can be measured by

If confidence is low, demand for financial capital will increase.

An increase in the price of substitutes will decrease demand for the original good.

If the demand for a good is more elastic than the supply, consumers will bear most of the tax burden.

During the Great Depression, unemployment was _______

The acronym GDP stands for:

All of the following are examples of price ceilings except:

The United States runs a trade surplus.

when it is impossible to produce more of one good/offer more of a service without decreasing the quantity produced of

When there is excess supply of labor (surplus), employers will be able to offer lower salaries, wages, benefits.

When the economy is doing poorly, wages will always decrease.

Exports as a percentage of GDP is one way to measure globalization.

Most global trade is for physical goods.

Quantity Supplied is the amount of the good or service producers supply at each price point.

Exports are goods and services produced domestically and sold abroad.

One way that the United States has experienced capital deepening is through:

the sum of consumer and producer surplus is called

Opportunity costs are costs previously incurred, cannot be recovered

Marginal analysis involves comparing the benefits and costs of choosing a little more or a little less of a good.

Potential GDP is marked by

Which country is a good example of a command economy?

In the financial market, excess supply occurs when:

All are goals of the macroeconomy except

Which of the following would impact Aggregate Demand?

GDP can understate or overstate a rise in the standard of living.

The difference between nominal GDP and real GDP is that REAL GDP has been adjusted for ___________:

AD/AS equilibrium will be closer to potential GDP during periods of expansion and further away during recessions

as prices increase, the quantity supplied will increase and as prices decrease, the quantity supplied will decrease.

This is the type of unemployment that occurs as individuals move between jobs.

The number of companies within an industry will impact the DEMAND for labor.

when a country can produce a good at a lower cost in terms of other goods or has a lower opportunity cost of production

the more good or service consumed, the less utility provided by each additional unit of the good/service to the consumer

factors of production affect demand

In the goods and services market, households provide labor to firms and pay them for goods & services provided.

Any choice along the budget constraint is feasible.

Assume the economy is at full employment & consumer spending decreases. What is most likely to happen in the short-run?

In the circular flow diagram ( goods & services market), households are demanders of ________ and providers of _____.

Business confidence has no impact on Aggregate Demand.

as prices increase, the quantity demanded will decrease and as prices decrease, the quantity demanded will increase.

Keyne's Law can be simplified as "supply creates its own demand".

Which statement is true?

refers to the amount of some good or service consumers are willing and able to purchase at each price.

Supply refers to the Supply Curve while Quantity Supplied refers to a specific point along the Supply Curve.

A country’s economy is in long-run equilibrium. What is the long-run effect of an increase in aggregate demand?

Another word for satisfaction, economically speaking

Households can be BOTH demanders and suppliers in the Financial Market.

High levels of trade and exchange between countries is an indicator of globalization.

The ________________ is the price where the Quantity Demanded and Quantity Supplied are equal.

An economy can produce at any point along or below the PPF (Production Possibilities Frontier)

The Core Inflation Index excludes volatile variables such as energy and food from the index.

Macroeconomics looks at the economy as a ___ while microeconomics focuses on ___ businesses, households and industries.

Real GDP is GDP that is

In the U.S. the most important contributor to economic growth appears to be human capital.

Say's Law says that

A country’s level of trade is determined by which of the following:

The government is always a demander of financial capital.

Adam Smith's concept that individual's self-interested behavior can lead to positive social outcomes