Shared Flashcard Set

Details

Econ Assessment test
Southeaster Louisiana econ 201 assessment test
20
Economics
Undergraduate 2
05/13/2013

Additional Economics Flashcards

 


 

Cards

Term
The total market value of all final goods and services produced in the economy during a period of time is how the ________________ is calculated.
Definition
Gross Domestic Product
Term
A decrease in interest rates
Definition
increases investment spending on machinery, equipment, and factories, consumption spending on durable goods, and net exports
Term
Fiscal policy is used by the federal government to
Definition
offset the effects of the business cycle on the economy
Term
The economic definition of ______________ is any asset that people are generally willing to accept in exchange for goods and services
Definition
money
Term
For most banks, their biggest asset is _________________ and their biggest liability is _______.
Definition
Loans; customers’ checking accounts
Term
An example of a person who is out of the labor force is ______________.
Definition
a retiree
Term
The Consumer price index (CPI) measures
Definition
the overall price level of goods and services in the economy
Term
The invention of new computers that increase labor productivity would be expected to
Definition
increase economic growth
Term
The discount policy, reserve requirements, and open market operations are all _________.
Definition
policy tools used by the Federal Reserve to manage the money supply
Term
High rates of saving and investment would most likely be an explanation for __________.
Definition
high growth rates in real GDP
Term
Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives refers to
Definition
Fiscal policy
Term
Purchases of stocks and bonds ________ included in economists’ definition of Investment because ______________.
Definition
are not; they are a financial asset, not a final good or service that is produced
Term
The quantity theory of money predicts that, in the long run, inflation results from real GDP
Definition
growing at a faster rate than the money supply
Term
Real GDP is GDP in a given year
Definition
valued in the prices of the base year
Term
In the U.S., Consumption spending represents ______ of GDP, Investment spending represents ________. And Government purchases represent ______________.
Definition
the largest share; the third largest share; the second largest share
Term
Which of the following would explain a reduction in human capital in an economy?
Definition
Disease, poor nutrition, and substandard health
Term
Actions taken by the Federal Reserve to manage the money supply and interest rates to pursue its economic objectives refers to
Definition
Monetary policy
Term
A slowdown in the economy would cause
Definition
cyclical unemployment
Term
Which of the following is an accurate statement?
Definition
A person on a fixed income during an inflationary period is hurt by inflation
Term
The federal government can use fiscal policy to increase real GDP by
Definition
increasing government purchases or decreasing taxes.
Supporting users have an ad free experience!