Define Council of Economic Advisers

State an example of how politics sometimes overrides economic policies.

Choose the correct answer.

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then______.

A) Iowa has a comparative advantage in the production of corn.

B) Iowa has an absolute advantage in the production of corn.

C) Iowa should import corn from Oklahoma.

D) Oklahoma should produce just enough corn to satisfy its own residents' demands.

Classify the term below into one of the following categories:

wage-price controls

• supply-side policies
• demand-side policies
• monetary policies

Explain why new problems will arise in the economy, even as old ones are solved.

Why is the misery index a more personal measure of the social costs of instability than other concepts, such as the GDP gap?

According to Keynesian economics, what action should government take if business investment fell by $20 billion? Show your findings using the outputexpenditure model:

GDP C = + I + G + F

Both demand-side and supply-side policies are designed to ensure stable economic growth. The approaches differ, however, on what should be done to achieve this goal. Assume that real GDP growth was negative during the last quarter. Make a twocolumn chart. In the left column, list the policies that demand-side economists would follow to help the economy. Place the supply-side solution in the right column. How do they differ?

The following selected transactions were completed during August of the current year:

1. Billed customers for fees earned, $\$ 73,900$.
2. Purchased supplies on account, $\$ 1,960$.
3. Received cash from customers on account, $\$ 62,770$.
4. Paid creditors on account, $\$ 820$. b. Post the entries prepared in (a) to the following $\mathrm{T}$ accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the accounts, place the appropriate number to identify the transactions.

Compare the views of supply-side economists and demand-side economists regarding the role of government in the economy.

Using your notes from the graphic organizer activity, explain the difference between automatic and discretionary fiscal policy. List examples of each in your answer.

What factors might cause aggregate demand to increase?

Log on to the Internet. Then, using a search engine, type in the following key words:

• John Maynard Keynes
• Unemployment
• Stabilization policies
• Inflation
• Fiscal policy

Print out (or download) any articles or reports on these topics. Using the information you retrieved, prepare a two-paragraph report on each topic listed above—defining the terms and summarizing their significance to economic security. Add a list of Web sites and bibliography entries at the end of your report.

Classify the term below into one of the following categories:

aggregate demand curve

• supply-side policies
• demand-side policies
• monetary policies