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60 Cards in this Set
- Front
- Back
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Figure 34-2, SRPC2 is based on an expected inflation rate of... |
%2 |
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Figure 34-2 SRPC1 is based on an expected inflation rate of... |
%0 |
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Unanticipated inflation... |
helps borrowers and hurts lenders |
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Contractionary monetary policy causes ________ in the price level in the short run and ________ in the price level in the long run. |
a decrease; a decrease |
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Which of the following will not increase the productivity of labor? |
an increase in the size of the labor force |
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An increase in the short-run aggregate supply curve may be caused by... |
an increase in productivity |
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Table 12-1, the unemployment rate for this economy is... |
%5 |
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According to the wealth effect, when the price level decreases, the purchasing power of assets... |
increases and consumer spending increases |
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The reserve ratio is... |
the fraction of its deposits that a bank holds as reserves |
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Sam is unemployed bc the steel plant in his town closed and moved to Mexico. Sam is experiencing... |
structural unemployment |
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Suppose that a presidential candidate promised large income tax cuts. Which is most likely to occur? |
An increase in aggregate demand |
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When the dollar value of the euro is high... |
travel in the US is less expensive for Europeans |
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Increases in the avg level of prices is called... |
inflation |
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Scenario 42-1 The dollar has... |
depreciated |
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Scenario 42-1 French exports to the US will... |
be more expensive |
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Scenario 42-1 In Germany, exports to the US... |
will increase, and imports from Europe will decrease |
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42-1 In the US, exports to Europe... |
will increase, and imports from Europe will decrease |
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Figure 6-1 If the prices of inputs used to produce and transport coconuts are increasing, then the movement of the model could be... |
C to A |
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Real GDP is... |
the value of the production of all the final good and services adjusted for price changes |
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figure 19-3 the intersection of AD with SRAS indicates... |
a short-run equilibrium |
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Figure 19-3 the intersection of SRAS with AD ... |
an economy experiencing a recessionary gap |
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Which transaction will be included in the official measurement of GDP? |
Sean bought a new iPhone |
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If the Fed Reserve uses expansionary monetary policy, then... |
there is a positive short-run effect on real GDP but GDP remains equal to potential GDP in the long run |
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Figure 28-1 If the interest rate is above the equilibrium rate, there will be an ____ money and the interest rate will _____. |
excess supply of; fall |
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Figure 28-1 Equilibrium in this money market will occur at an interest rate _____ and quantity of money ______ |
r2, q1 |
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Table 11-3 Nominal GDP in Year 4 is equal to... |
$280 |
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If a country sold more goods and services to the rest of the world than they purchased from the other countries, then the country has a... |
trade surplus |
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Figure 31-3 If the economy is experiencing a recessionary gap, the Fed would _____govt bonds, which would _____ the money supply and _____ interest rates. This is shown in Panel ____. |
buy; increase; decrease; (a) |
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31-3 Panel _____ illustrates what happens when the Fed decides to _____govt bonds and _____ the money supply. |
(b); sell; decrease |
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31-3 Panel (a) illustrates what happens when the Fed decides to ____ the money supply and _____ the interest rates |
increase; decrease |
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31-3 If the Fed intended to encourage investment and expand the economy , it would ______ govt bonds, _______ the money supply, and ______ interest rates. This is shown in Panel _____. |
buy; increase; decrease; (a) |
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25-1 If the resrev ratio is %25, loans are... |
$60,000 |
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25-1 if the reserve ratio is %25, deposits are... |
$80,000 |
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Which accurately portrays the shape of a long-run Phillips curve? |
vertical |
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A tradeoff between unemployment and inflation is depicted by... |
a Phillips curve |
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The major tools of monetary policy available to the Fed Reserve System include... |
reserve requirements, open-market reg, and the discount rate |
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The sequence of business-cycle phases is... |
peak, recession, trough, expansion |
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29-11 if the money supply is currently at MS1 and the central bank chooses to buy bonds, then the resulting short-run shift int he supply of savings may be represented by a shift of the... |
supply of loanable funds from S1 to S2 and a lower interest rate |
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29-11 If the money supply is currently at MS2 and the central bank chooses to sell bonds, then the resulting short-run shift in the supply of savings may be rep by a shift of the |
supply of loanable funds from S2 to S1 and a higher interest rate |
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3-2 if the economy is producing at alt X the opportunity cost of producing y is _____ units of consumer goods... |
6 |
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20-4 the movement fro AD1 to AD3 could be caused by... |
increased govt purchases |
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20-4 At E1 the ecomony |
has a recessionary gap |
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table 4-1 the table shows the maximum amounts of coffee and salmon the Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of coffee for BRazil is... |
1/2 salmon |
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An example of cyclical unemployment is a(n) |
autoworker who is laid off from an automobile company due to a decline in sales caused by a recession |
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The skills, training, and education possessed by workers contribute to economic growth and are known as... |
human capital |
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Suppose the Fed buys $50 mil in Treasury bills from commercial bank. If the reserve ratio is %10, the monetary supply might eventually ____ by _____ |
increase; %500 mil |
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Agg demand will increase if |
the public becomes more optimistic about future income |
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The Fed Res System is the _____ for the US |
central bank |
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Stagflation is a combination of |
unemployment and inflation |
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According to the short-run agg supply curve, when the ____ rises, the quantity of ____ rises |
agg price level, agg output supplied |
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Over the past several years, consumer tastes for tattoos have increased. This means that the ____ for tattoos has ______ |
demand; increased |
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suppose you are told that the short-run Phillips curve has shifted upwards. Which of the following must have happened? |
The SRAS curve has shifted to the left |
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Which qualifies as an asset from the viewpoint of a household? |
a house |
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GDP is the sum of |
personal consumption, investment, govt purchases, and net exports |
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figure 2-1 Point B on this graph shows |
a peak |
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figure 2-1 the movement from Point B to C is called |
an expansion |
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a general increase in wages will result in the |
short-run agg supply shifting to the left |
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the labor force is defined as |
the total of the persons employed and unemployed |
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when the Fed govt finances a deficit, the govt may |
borrow funds |
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if the Fed Reserve wanted to increase the money supply, it could |
decrease the required reserve ratio, decrease the discount rate, buy bonds on the open market |
