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$100 $200 $300 $400 $500 GraphsEconomicEquations Unit 1 Unit 3 KeyTerms Unit 2

C1-$300 - $100 What is Labor Force? The sum of the employed and the unemployed

C1-$400 - $200 What is Frictional Unemployment? Unemployment due to the time workers spend in job search (searching or waiting for jobs…recent college graduates)

C1-$200 - $300 The opportunity cost of producing the good or service is lower for that individual than for other people Comparative Advantage is when?

C1-$100 - $400 The decision of individual producers and consumers largely determine what, how, and for whom to produce, with little government involvement in the decisions What is Market Economy?

C1-$500 - $500 The difference between the equilibrium real production achieved in the short-run aggregate market and full-employment real production that occurs when short-run equilibrium real production is less than full-employment real production Recessionary GAP

C2-$300 - $100 Long Run Aggregate Supply Demand What kind of graph is this?

C2-$400 - $200 Circular Flow Diagram What kind of graph is this?

C2-$100 - $300 Demand and Supply (Basic) What kind of graph is this?

C2-$200 - $400 Business Cycle What kind of graph is this?

C2-$500 - $500 Production Possibility Graph What kind of graph is this?

C3-$100 - $100 What is the Marginal Unit Cost equation? opportunity cost / units gained

C3-$200 - $200 (Year 2 – Year 1 / Year 1) x 100 What is the % change in GDP equation?

C3-$400 - $300 What is the MPC equation? Change in Consumption / Change in Disposable Income

C3-$500 - $400 What is the MPS equation? Change in Saving / Change in Disposable Income

C3-$300 - $500 What is the Consumer Price Index equation? =price of market basket in a particular year / price of the same market basket in base year

C4-$500 - $100 What are the four factors of production? Land, labor, capital, entrepreneurship

C4-$100 - $200 What is allocative efficiency? When resources and goods are distributed.

C4-$200 - $300 What is productive efficiency? When resources and goods are being utilized to their maximum.

C4-$300 - $400 What are the five determinants of demand? Taste in preference, number of consumers, price of related goods, income, and expectations.

C4-$400 - $500 What are the six determinants of supply? Prices/Availability of inputs, number of sellers, technology, government action, opportunity cost, and expectations

C5-$100 - $100 What is Gross Domestic Product? the total value of all final goods and services produced in an economy during a given period

C5-$200 - $200 What are the four components of Gross Domestic Product? Consumer Spending, Investment, Government Spending, and Net Exports

C5-$300 - $300 What is Nominal Gross Domestic Product? is the market value (money-value) of all final goods and services produced in a geographical region

C5-$400 - $400 What is Real Gross Domestic Product? It is the measure of the value of output economy, adjusted for price changes. The adjustment transforms the nominal GDP into an index for quantity of total output.

C5-$500 - $500 It is the deviation of the actual rate of unemployment from the national rate (due to recession) What is cylical unemployment?

C6-$100 - $100 What is aggregate demand? Is the total amount of goods and services demanded in the economy at a given overall prices and in a given time period.

C6-$200 - $200 What is aggregate supply? The total amount of goods and services produced in the economy at a given overall price level in a given time period.

C6-$300 - $300 What are the three shifters of aggregate supply? Resources price, actions of the government, and productivity

C6-$400 - $400 What is fiscal policy? The use of taxes, government transfers for government purchases of goods and services to stabilize the economy

C6-$500 - $500 What is discretionary fiscal policy? The fiscal policy that is the result of deliberate actions by policy makers rather than rules