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3. $100 $200 $300 $400 $500 Key Terms Economic Theories GDP/Inflations Government Policies Unemployment/EmploymentGraphs

4. C1-$100 - $100 - $100 A negative relationship on graph is a Left ward shift

5. C1-$200 - $200 An aggregate demand curve shows the total amount of goods and services demanded in an economy at an overall price level and at a given time

6. C1-$300 - $300 On a productions possibility curve, points outside of the curve are considered Unattainble

7. C1-$400 - $400 AS/AD graphs can show which types of gaps Recessionary and Inflation gaps

8. C1-$500 - $500 A Philips curve can shows the short run trade-off between Inflation and unemployment

9. C2-$100 - $100 Consumer goods are goods that are for The final consumer

10. C2-$200 - $200 The law of demand states that the higher the price for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service

11. C2-$300 - $300 The revolving door affect refers to Going from public sector employment to private sector employment and vice versa

12. C2-$400 - $400 Stagflation is A period of slow economic growth and relatively high unemployment and inflation

13. C2-$500 - $500 A centrally planned economic system is a system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses

14. C3-$100 -$100 True/False A communist economy is an example of a centrally planned economy True

15. C3-$200 - $200 The US is a strong proponent of which economic theory? Capitalism

16. C3-$300 - $300 Karl Marx created which economic theory? Socialism

17. C3-$400 - $400 Adam Smith is considered the father of which type of economics? Classical economics

18. C3-$500 -$500 True/False Keynesian economics believes that the short run is affected by aggregate demand True

19. C4-$100 - $100 GDP is the total value of all final goods and services produced in the economy during a given year

20. C3-200 - $200 The Determinants of GDP are Consumer spending, government spending, investment spending, an net exports

21. C3-$300 - $300 An inflationary gap is the distance between current levels of real GDP and full employment GDP

22. C3-$400 - $400 GDP per capita is average GDP per person

23. C3-$500 - $500 The percentage change per year in a price index is called Inflation rate

24. C4-$100 - $100 Automatic stabilizers are designed to offset fluctuations in the economy without government intervention through policies

25. C4-$200 - $200 A stabilization policy tries to keep economic growth stable and both Inflation and unemployment

26. C4-$300 - $300 A fiscal policy is government spending that affects Macroeconomic conditions

27. C4-$400 - $400 A contraction policy is a reaction to a rapid economy and works to slow expansion

28. C4-$500 - $500 A policy that seeks to expand the money supply, economic growth, and combat inflation is called An expansionary policy

29. C4-$100 - $100 The labor force consists of both the Employed and unemployed

30. C4-$200 - $200 True/False Only people looking for work and can’t find it are considered unemployed True

31. C4-$300 - $300 Unemployment due to time workers spend searching for a job is called Frictional unemployment

32. C4-$400 - $400 Frictional and structural unemployment is considered The Natural Rare of Unemployment

33. C4-$500 - $500 Cyclical Unemployment is the deviation of the actual rate of unemployment from the natural rate due to a recession.