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Key TermsKey Terms Economic TheoriesEconomic TheoriesGDP/InflationsGDP/Inflations Government PoliciesGovernment PoliciesUnemployment/EmploymentUnemployment/EmploymentGraphsGraphs
- $200An aggregate demand curve shows
the total amount of goods and services demanded in an economy at an overall price level and at a given time
- $200The law of demand states that
the higher the price for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service
- $300The revolving door affect refers to
Going from public sector employment to private sector employment and vice versa
- $400Stagflation is
A period of slow economic growth and relatively high unemployment and inflation
- $500A centrally planned economic system is a system in
which
economic decisions are made by the state or government rather than by the interaction between consumers and businesses
-$500True/False
Keynesian economics believes that the short run is affected by aggregate demand
True
- $100GDP is the
total value of all final goods and services produced in the economy during a given year
- $200The Determinants of GDP are
Consumer spending, government spending, investment spending, an net exports
- $300An inflationary gap is
the distance between current levels of real GDP and full employment GDP
- $100Automatic stabilizers are designed to
offset fluctuations in the economy without government intervention through policies
- $200A stabilization policy tries to keep economic growth
stable and both
Inflation and unemployment
- $500A policy that seeks to expand the money supply, economic growth, and combat inflation is called
An expansionary policy