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| Draw an AD/AS graph of a recessionary gap and show how in the long-run it will self correct. |
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Definition
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| Name all the factors that will cause AD to shift to the right. (Approx. 10) |
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Definition
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| Name all the factors that will cause AS to shift to the right. (Approx. 10) |
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Definition
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Term
| How does an increase in the money supply affect the economy according to the monetarists v. Keynesians? |
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Definition
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Term
| Which fiscal policy tool has the most direct affect on GDP? |
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Definition
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Term
| Why do supply-siders think it is wise to reduce income taxes? And corporate taxes? |
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Definition
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Term
| What is the difference between the simplified spending multiplier formula and the actual spending multiplier? |
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Definition
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Term
| What is the difference between the simplified money multiplier formula and the actual money multiplier formula? |
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Definition
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Term
| What is the difference between the monetary base and the money supply? |
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Definition
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Term
| What two factors cause the money demand curve to shift? |
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Definition
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Term
| Why is the reason the money supply curve is positively sloped? |
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Definition
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Term
| What is the difference between crowding out v. crowding in? |
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Definition
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Term
| What is the difference between discretion[ary] and rule based policies? |
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Definition
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Term
| If you plan on buying Euros as a two to three year investment, what economic variable will have the greatest influence on your ability to profit from this investment? |
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Definition
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Term
| What is the difference between commodity money and fiat money? |
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Definition
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Term
| How do banks make a profit and how do they create money? |
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Definition
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Term
| Name five purposes the Fed serves in the United States. |
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Definition
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Term
| FOMC – What is it? Who is in it? How often? What do they do? |
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Definition
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Term
| Is balancing the budget during a recession pro-cyclical? |
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Definition
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Term
| What is an example of an automatic stabilizer? |
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Definition
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Term
| Is a rule based policy that targets the interest rate pro-cyclical? |
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Definition
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Term
| What is a tariff? Who wins when tariffs are eliminated? Who loses? |
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Definition
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Term
| What is the difference between GDP and GNP? |
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Definition
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Term
| How is GDP calculated? (Three approaches) |
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Definition
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Term
| What is the difference between deflation and disinflation? |
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Definition
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Term
| What is the formula to determine the unemployment rate? |
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Definition
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Term
| What is the difference between the production possibility frontier graph and the production function graph? |
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Definition
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Term
| What are some policies that help promote growth? (Approx. 4) |
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Definition
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Term
| What is the formula for GDP per capita and labor productivity? |
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Definition
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Term
| What is the difference between deficit and debt? |
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Definition
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Term
| Why is it that due to their debt problems Greece can go bankrupt but the United States cannot? |
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Definition
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Term
| What causes the consumption function to shift? |
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Definition
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Term
| When AE is greater than Y, what happens to inventory levels? |
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Definition
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Term
| What is the GDP deflator formula? |
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Definition
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Term
| How is CPI calculated by the government and what are the problems that make measuring inflation difficult for the government? |
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Definition
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Term
| What is the difference between microeconomics and macroeconomics? |
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Definition
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Term
| If the value of the dollar falls, then which way will the AD curve shift and which will AS shift in U.S.? |
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Definition
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Term
| What is the similarity between mercantilists and current Chinese exchange rate policy? |
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Definition
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Term
| What are efficiency wages and how do they cause unemployment? |
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Definition
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Term
| What is the difference between causation and correlation? Positive v. normative economics? |
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Definition
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