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15 Cards in this Set
- Front
- Back
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GDP expressed in constant, or unchanging, prices is called ____
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Real GDP
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The amount of money a person has left of his or her income after taxes is called
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Disposable personal income
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The lowest point in an economic contraction is called
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a trough
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An accurate statement about the Great Depression would be that
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It ended largely because of an increase in defense spending related to WWII
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How is nominal GDP converted into real GDP?
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Through eliminating the effects of price increases on GDP growth
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If no foreign companies produce in a country, but many of the country's companies build products in foreign countries, then it is safe to say that ____
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The country's GNP is greater than it's GDP
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Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?
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Aggregate supply will decrease, raising the price level and lowering real GDP
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In a typical business cycle, what stage immediately follows a peak?
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A Contraction
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How do fears of future economic problems affect GDP?
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consumers will spend less and save money; GDP will be reduced
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Which of these is an example of depreciation?
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A construction worker's truck breaks down more often after 80,000 miles of work
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What do most economists believe about the future of business cycles?
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Business cycles will continue to drive our economy in the future
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What is an example of a positive external shock to aggregate supply?
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Good weather leads to an unusually productive harvest for corn farmers.
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As you move from left to rightt, the aggregate demand curve___
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slopes downward
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an economy that experiences decreasing real GDP and increasing prices is said to suffer from ____
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Stagflation
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Higher saving leads to higher GDP in the future because
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more capital is available for investement
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