5 Written questions
5 Matching questions
- Natural Unemployment
- Real Interest Rate
- Lower marginal tax rate
- Quantity Demanded
- Automatic Stabilizers
- a nominal interest rate-inflationary premium
-price of loanable funds
-Interest rate adjusted for inflation
- b built in features tha automatically promote a budget deficit during a recession and a budget surplus during an expansion (without a change in policy
- c the combination of Structual unemployment and frictional unemployment and is not fixed but affected by the structure of labor force and public policy
- d -will give people the incentive to work more
-if believed to be long term will shift both SRAS and LRAS
-long run growth oriented strategy
- e -Movement along the curve due to a change in PRICE of a good
5 Multiple choice questions
- results from changes in the economy and imperfect information that prevents workers from being immediately matched up with existing job openings
- an issue that generates substantial benefits for a small group by generating minimal costs to a large group.
- No short run increase in output, only long run inflation.
- Upward sloping, increasing interest rates will cause people to say no to investing.
- -Medium of Exchange
-Store of Value
-Unit of account
5 True/False questions
What open market operation increases the money supply? → When the fed sells bonds.
Expenditure Approach → a change in expenditures will have a greater impact than the initial change
Median voter theory → Money used to buy goods and services
-fiat money: money that has no intrinsic value
-More efficient to use money
Store of Value → asset that will allow people to transfer purchasing power from one period to the next
Crowding Out → reduction in private spending due to higher interest rates generated by a budget deficit financed through government borrowing.