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$100 $200 $300 $400 $500 AD/ADGraphsEmployment Key terms Key termsEconomicsGDP

C1-$100 - $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

C1-$200 - $200 What is the equation for GDP? GDP= G+C+I+Xn

C1-$300 - $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

C1-$400 - $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.

C1-$500 - $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.

C2-$100 - $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.

C2-$200 - $200 What is the law of demand? As the price of a product increases, quantity demanded lowers. Which means they are inversely proportional.

C2-$300 - $300 What is the law of supply? An increase in price results in a increase in quantity. In other words they are directly proportional.

C2-$400 - $400 What is the difference between aggregate demand/supply and demand/supply? Aggregate takes into account all goods in an economy.

C2-$500 - $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.

C3-$100 - $100 What is point b? Point b represents full employment.

C3-$200 - $200 What is the difference between SR and LR? Short run is curve and Long run is linear.

C3-$300 - $300 An increase in technology would shift a production possibility curve in what direction? This would shift the graph to the right.

C3-$400 - $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.

C3-$500 - $500 What causes equilibrium and unemployment? Equilibrium is when all resources are being used efficiently. Unemployment is when there is not enough work.

C4-$100 - $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

C $200 What are the different types of unemployment? Cyclical Unemployment, Frictional Unemployment, and Structural Unemployment

C3-$300 - $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.

C3-$400 - $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.

C3-$500 - $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.

C4-$100 - $100 What are normal goods? In economics, normal goods are any goods for which demand increases.

C4-$200 - $200 What is ppc/ppf? Trade-offs facing an economy that produces only two goods.

C4-$300 - $300 What is a GDP deflator? For a given year is 100 times the ratio of nominal GDP to real GDP in that year?

C4-$400 - $400 What is scarcity? Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

C4-$500 - $500 What are intermidiate Goods? Goods and services brought from one firm by another firm to be used as inputs into productions.

C4-$100 - $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.

C4-$200 - $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,

C4-$300 - $300 Name the two type of economic theories? The two types of economic theories are the classical and Keynesian.

C4-$400 - $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.

C4-$500 - $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.