FINAL ECONOMICS DUE TONIGHT OR TOMORROW ASAP

b. an increase in GDP in Japan

c. a decrease in taxes

d. a decrease in the price level

is anything that serves as a medium of exchange.

is anything that is widely accepted as a means of payment.

occurs when goods are exchanged directly for other goods.

a consistent means of measuring the value of things.

an item that holds value over time.

the sum of all past federal deficits, minus any surpluses.

The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.

the use of government expenditures and taxes to influence the level of economic activity.

Any government program that tends to reduce fluctuations in GDP automatically

The impact of higher oil prices on the production of steel

The increased demand in the last 15 years for exotic dietary supplements

The surge in aggregate economic activity that hit much of Asia late in the early 2000s

The sharp increases in U.S. employment and total output that occurred between 2003 and 2007

The impact of preservation of wilderness areas on the logging industry and on the price of lumber

a. markets mismatch buyers and sellers

b. the butcher and the baker are benevolent

c. people acting in their own self-interest promote the interest of society as a whole

d. the production possibilities frontier illustrates efficient outcomes

a. What is the relationship between inflation and unemployment?

b. How many computer programmers will be demanded by firms next year?

c. How many automobiles will be produced next year?

d. What percentage of workers belongs to a union?

a. John Maynard Keynes

b. Karl Marx

c. Adam Smith

d. Milton Friedman

a. Unemployment Rate

b. GDP

c. The inflation rate

d. All of the above

a. anything that is regularly used in economic transactions or exchanges

b. necessary to conduct economic transactions

c. facilitates specialization in production

d. anything that has value

a. not have a job

b. not have a job and must have looked for work at some time

c. not have a job and must be actively looking for work

d. working less than their desired amount of time

a. tax-free income

b. marginal income

c. disposable personal income

d. sheltered income

a. limit on the quantity of a good that can be imported into a country

b. tax on imports

c. voluntary agreement between two countries to limit exports

d. strict enforcement of health laws

a. very large issues

b. the choices made by individual households, firms and governments

c. the nation’s economy as a whole

d. the relationship between inflation and wage inequality

a. supply curve of coal would shift to the left

b. supply curve of coal would shift to the right

c. demand curve for coal would shift to the left

d. demand and supply curves for coal would shift to the left

a. these are the only goods and services that are purchased in an economy

b. counting all goods and services would lead to double-counting of many activities

c. it is difficult to measure the prices of intermediate goods produced

d. one cannot calculate the quantities of intermediate goods produced

a. financial decision-making

b. how consumers make purchasing decisions

c. choices made by people faced with scarcity

d. inflation, unemployment and economic growth

a. microeconomics

b. political science

c. macroeconomics

d. labor economics

a. output

b. prices

c. employment

d. inflation

Short for real gross domestic product, is the total value of all final goods and services produced during a particular year or period, adjusted to eliminate the effects of changes in prices.

a statistic, such as the unemployment rate, GDP, or the inflation rate, which indicates how well the economy is doing and how well the economy is going to do in the future.

is an increase in the average level of prices Inflation is measured as the annual rate of increase in the average level of prices.

is a decrease in the average level of prices.

is generally defined as an inflation rate in excess of 200% per year.

a number whose movement reflects movement in the average level of prices.

a price index whose movement reflects changes in the prices of goods and services typically purchased by consumers.

the percentage of the labor force that is unemployed.

the value of total output measured in current prices.

a. trough, expansion, peak and recession

b. trough, expansion, recession and peak

c. trough, peak, expansion and recession

d. trough, recession, expansion and peak

Path:

A stabilization policy designed to increase real GDP

A stabilization policy that reduces the level of GDP

the use of government purchases, transfer payments, and taxes to influence the level of economic activity.

the use of central bank policies to influence the level of economic activity.

A policy in which the government or central bank acts to move the economy to its potential output

a. aggregate supply

b. market supply

c. aggregate demand

d. market demand

a. imposes a tax on goods entering the country

b. limits the quantity of goods entering the country

c. limits the quantity of goods leaving the country

d. subsidizes the production of goods leaving the country

a. downward sloping

b. upward sloping

c. a vertical line at potential output

d. a horizontal line at the current price level

a. has no effect on

b. may increase or decrease

c. increases

d. decreases

a. the cost of the labor used to produce it

b. the best alternative you sacrifice to get it

c. the price charged for it

d. the search cost required to find it

a. Aggregate worker productivity increased by two percent in 1997.

b. The price of apples decreased by five percent last year.

c. Real domestic output in Cambodia increased ten percent from 1995 to 1996.

d. Unemployment was seven percent of the labor force in 1995.

a macroeconomic school of thought that emphasizes the long run and reliance upon market forces to achieve full employment.

a macroeconomic school of thought that emphasizes the sort run and the importance of fiscal policy.

a body of macroeconomic thought that stresses the stickiness of prices and the need for activist stabilization policies through the manipulation of aggregate demand to keep the economy operating close to its potential output.

holds that changes in the money supply are the primary cause of changes in nominal GDP.

a. monetary policy

b. fiscal policy

c. cyclical policy

d. procyclical policy

a. no money exists

b. neither party to the exchange has a comparative advantage in the goods being traded

c. there exists a double coincidence of wants

d. money does not have a store of value

a. money the firm gets by selling its product, less the cost involved in producing that amount of output

b. extra amount of money that a firm gets by selling a marginal unit of its product, irrespective of its costs of production

c. money the firm gets by selling all units of its product, irrespective of the costs of production

d. price of the product times the marginal cost of production

a. change

b. demand

c. responsiveness

d. stickiness

a. It does not take account of the price of imported goods and services.

b. The goods used to construct the index do not change from month to month.

c. It does not take into account the price of used goods.

d. It understates the true rate of inflation.