FINALS chapter 16-18
Cards (48)
- _____ strives to achieve rapid and reasonably stable growth while keeping both unemployment and inflation low.
- _____ unemployment is above full employment. High unemployment exacts heavy financial and psychological costs from those who are its victims, costs that are borne quite unevenly by different groups in the population.
- _____ arises when people are between jobs for normal reasons. Thus, most frictional unemployment is desirable.
- _____ is due to shifts in the pattern of demand or to technological change that makes certain skills obsolete.
- _____ is the portion of unemployment that rises when real GDP grows more slowly than potential GDP and falls when the opposite is true.
- The _____ tells us how much output the economy can produce from the available supplies of labor and capital, given the state of technology.
- The _____ is the sum of the growth rate of the labor force plus the growth rate of labor productivity.
- The _____ is the percentage increase in purchasing power that the borrower pays to the lender for the privilege of borrowing. It indicates the increased ability to purchase goods and services that the lender earns.
- The _____ is the percentage by which the money the borrower pays back exceeds the money that was borrowed, making no adjustment for any decline in the purchasing power of this money that results from inflation
- A _____ is the difference between the price at which an asset is sold and the price at which it was bought.
- The _____ is its plan for managing aggregate demand through its spending and taxing programs which is made jointly by the president and Congress.
- _____ can be carried out either by means that tend to expand the size of government or by means that reduce the size of government.
- _____ can mitigate recessions, but it also raises the budget deficit, and also normally exacts a cost in terms of higher inflation.
- _____ aim to push the economy’s aggregate supply curve inward to the left. When successful, they can expand the economy and reduce inflation at the same time - a highly desirable outcome.
- _____ is the standard object used in exchanging goods and services. In short, money is the medium of exchange.
- It is _____________ as a medium of exchange than by bartering them directly and in addition to being the medium of exchange, whatever serves as money is
- ________ in their investment strategies as they also keep a prudent level of reserves. Even so, the government keeps a watchful eye over banking practices.
- _____ refers to actions that the central bank takes to change interest rates and the money supply. It is aimed at affecting the economy.
- _____ works in: Raising the supply of bank reserves leads to lower interest rates; lower interest rates stimulate investment spending; and investment stimulus, via the multiplier, raises aggregate demand
- ___ and ___ though related to each other, have different concepts.
- _____ independence refers to the central bank’s ability to make decisions with political interference.
- The _____ is the amount by which the government’s expenditures exceed its revenue receipts, during exceed its receipts during a specified period of time, usually a year.
- The _____ is the government’s total indebtedness at a moment in time, as the result of previous budget deficits.
- _____ can be caused either by rapid growth of aggregate demand or by sluggish growth of aggregate supply.
- _____ is a rise in the price level caused by rapid growth of aggregate demand.
- _____ is a rise in the price level caused by slow growth (or decline) of aggregate supply.
- _____ is the economy’s self-correcting mechanism which always tends to push the unemployment rate back toward a specific rate of unemployment.
- The _____ that shows the menu of inflation and unemployment choices available to society in the long run is a vertical straight line at the natural rate of unemployment. (Referring to the below graph “Origins of the Philips Curve” for analysis interpretation).
- A _____ is a graph depicting the rate of unemployment on The horizontal (X) axis and either the rate of inflation or the rate of change of money wages on the vertical (Y) axis. (Referring to the below graph “Origins of the Philips Curve” for analysis interpretation).
- _____ are normally downward sloping, indicating, that higher inflation rates are associated with lower unemployment rates. (Referring to the below graph “Origins of the Philips Curve” for analysis interpretation).
- _____ are forecasts that, although not necessarily correct, are the best that can be made given the available data.
- _____ means that a country devotes its energies and resources to only a small proportion of the world’s productive activities.
- _____ that Both parties, the seller and the buyer must expect to gain from any voluntary exchange.
- A _____ (individual, firm or country) has a _____ over another producer in the production of some good if they have a lower opportunity cost of producing that good than the other producer.
- The _____ states the price, in terms of one currency, at which another currency can be bought.
- A _____ is said to appreciate when exchange rates change so that a unit of its currency can buy more units of foreign currency.
- A _______ when exchange rates change so that a unit of its currency can buy fewer units of foreign currency
- A _____ in the official value of a currency.
- A _____ in the official value of a currency.
- _____ are rates determined in free markets by The law of supply and demand.