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41 Cards in this Set
- Front
- Back
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Which part of the money supply would include large financial assets and Eurodollars? |
M3 |
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Which part of the money supply would be just cash and demand deposits? |
M1 |
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What is the largest difference between M1, M2, M3 |
Liquidity |
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Likely to be cause by increasing wages? |
Cost-push |
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What type of inflation might be caused by supply problems? |
Demand-pull |
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Who would most likely benefit from inflation? |
Borrower |
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What happens to the value of money during inflation? |
Decreases |
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What is the most common measure of inflation |
CPI |
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What is a limitation or problem with the CPI |
Too much change |
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Which group would tend to be harmed by inflation? |
Lender |
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What would tend to happen to the savings rate during times of moderate to high inflation? |
Decrease |
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Why are many retirees harmed by inflation? |
Problems buying necessities |
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What is a part of the way that banks create money? |
Lending |
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What is another part of the way that banks create money? |
Fractional reserve |
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What is a major difficulty shared by government fiscal policies and economic statistics? |
Timing |
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What is a major blind spot of GDP |
Unpaid labor |
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What is the usual comparison of GDP to the actual output of the economy? |
GDP smaller |
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What is one economic goal that almost all people in the U.S always agree on being desirable and doable? |
Growth |
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What economic goal is the market economy in the U.S best at delivering? |
Efficiency |
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What economic goal must we frequently most decrease or limit to achieve equity and/or security |
Freedom |
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Why might someone have $10,000 more in the bank than 5 years before but be considered to have less money ? |
Inflation |
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What economic goal is frequently sacrificed to achieve price stability? |
Full employment |
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What could the federal reserve do to decrease the money supply? |
Raise the reserve requirement |
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What is the best measure of the changes in standard of living in a country? |
Real per capita GDP |
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What is one of the biggest advantages of countries specializing in goods and services? |
More products |
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What else is a result of fewer trade barriers and more trade? |
Lower prices |
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What is the most important part in creating comparative advantage? |
Opportunity cost |
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what type of unemployment was suffered by people who made CD players and VCRs? |
Structural |
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What type of unemployment is the most predictable? |
Seasonal |
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What type of unemployment would be most likely to cause a permanent change in where you live? |
Structural |
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What type of unemployment happened to a number of people working at lumber mills and other building products manufacturers during the 2007 recession? |
Cyclical |
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What are the people who want to protect new industries likely to advocate? |
higher tariff |
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Why is it difficult to see much of the costs of a trade barrier? |
They are spread out |
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What is the most likely if a country has an absolute advantage in most goods and services? |
Higher standard of living |
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What is a major problem in measuring when a country has reached full employment |
Counting who needs a job |
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What is major problem that unemployment numbers usually omit? |
Underemployment |
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What type of unemployment is frequently a result of lowering trade barriers, such as NAFTA |
Structural |
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What overall effect does free trade have on jobs? |
Helps increase them |
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What has been one result of free trade? |
More income inequality |
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What type of unemployment will always exist even under full employment? |
Frictional |
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What has been a major reason for lowering trade barriers and increasing world trade over the last 50 years? |
Everyone benefits |
