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AD/ADAD/ADGraphsGraphsEmploymentEmploymentKey termsEconomicsEconomicsGDPGDP

- $100- $100 What is market value of all officially recognized final goods and

services produced within a country in a year, or other given period of time?

GDP

- $200 What is the equation for GDP?

GDP= G+C+I+Xn

- $300 If a Farmer buys a used tractor for his farm, would the purchase of the

tractor be included on the year’s GDP?

No, Only new products are included in the GDP

- $400 How is real GDP calculated?

Real GDP is calculated by adding all final good and then dividing by CPI. Unlike the nominal GDP, real GDP takes into account inflation.

- $500 Define CPI and how is it connected to GDP?

CPI is measures changes in the price level of a market basket of consumer goods and services purchased by households. We use CPI in order to calculate inflation and real GDP.

- $100 What are the shifters of demand?

The shifters of demand are Change in the price, Technology, Number of sellers, Future price expectations, Prices of related goods, and Government restrictions.

- $200 What is the law of demand?

As the price of a product increases, quantity demanded lowers. Which means they are inversely proportional.

- $300 What is the law of supply?

An increase in price results in a increase in quantity. In other words they are directly proportional.

- $400 What is the difference between aggregate demand/supply

and demand/supply?

Aggregate takes into account all goods in an economy.

- $500 What is the difference between Concave and convex on

an graph?

Concave is a surface that is curved inward in the middle and convex is a surface that is curved outward.

- $100 What is point b?

Point b represents full employment.

- $200 What is the difference between SR and LR?

Short run is curve and Long run is linear.

- $300 An increase in technology would shift a production possibility curve in what

direction?

This would shift the graph to the right.

- $400 What causes movement along a demand graph?

What causes movement along the graph is A movement along the demand curve is caused by a change in price of the good or service.

- $500 What causes equilibrium and unemployment?

Equilibrium is when all resources are being used efficiently. Unemployment is when there is not enough work.

- $100 What is unemployment?

number of unemployed: the number of people who are unemployed in an area, often given as a percentage of the total labor force

- $200 What are the different types of unemployment?

Cyclical Unemployment, Frictional Unemployment, and Structural Unemployment

- $300 What is stagflation?

Stagflation, stagnation and inflation, is a term used in economics to describe a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high.

- $400 Describe the circular flow model?

In economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income between producers and consumers.

- $500 What counts as unemployment?

People not looking for a job don’t count as Unemployed. Neither do people moving from job to job. Only people that have been out of the job for 3 months count.

- $100 What are normal goods?

In economics, normal goods are any goods for which demand increases.

- $200 What is ppc/ppf?

Trade-offs facing an economy that produces only two goods.

- $300 What is a GDP deflator?

For a given year is 100 times the ratio of nominal GDP to real GDP in that year?

- $400 What is scarcity?

Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

- $500 What are intermidiate Goods?

Goods and services brought from one firm by another firm to be used as inputs into productions.

- $100 Explain the difference between Macro and micro

economies?

Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. Microeconomics are is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources.

- $200 What are supply side Economics?

Supply-side economics is a school of macroeconomics that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services,

- $300 Name the two type of economic theories?

The two types of economic theories are the classical and Keynesian.

- $400 What is closed economy?

An economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economy's borders.

- $500 Explain the difference between Command and market

economy?

A command economy is where the government control the economy and a market is where the market is free. The U.S. is a market and China is a command.