Microeconomics (Unit 3) - Assignment Essays %

question

microeconomics

answer

study of the economics of a nation as a whole

question

business cycle

answer

largely systematic ups and downs of real GDP

question

business flunctuations

answer

rise and fall of real GDP over time in a nonsystematic matter

question

recession

answer

a period during which real GDP declines for two quarters in a row, or six consecutive months

question

peak

answer

the point where real GDP stops going up

question

trough

answer

the turn-around point where real GDP stops going down

question

expansion

answer

a period of recovery from a recession

question

trend line

answer

if periods of recession and expansion did not occur, the economy would follow a steady growth plan

question

depression

answer

a state of the economy with large numbers of people out of work, acute shortages , and excess capacity in manufacturing plants

question

depression scrip

answer

currency was to such short supply that towns, counties, chambers of commerce, and other civic bodies restored into printing their own money

question

econometric model

answer

a macroeconomic model that uses algebraic equations to describe how the economy behaves

question

index of leading indicators

answer

a monthly statistical series that usually turns down before real GDP turns up

question

Identify the 2 main phrases of a business cycle.

answer

recession, expansion

question

Explain how the Great Depression compared to other recessionary periods

answer

The Great Depression was more severe than other recessionary periods. It was the worst economic decline in US history.

question

List five causes of business cycles

answer

capital expenditures, inventory adjustments, innovation and imitation, monetary factors, external shocks

question

gross domestic product (GDP)

answer

the total value of all final goods and services produced in an economy

question

per capita

answer

the amount of any number (x) per household

question

consumer price index (CPI)

answer

the monthly change in the costs of goods and services, measured using a sample of typical goods and services. This is how inflation is measured

question

inflation

answer

a rise in prices (unemployment usually decreases)

question

deflation

answer

a drop in prices (unemployment usually increases)

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stagflation

answer

a rise in prices AND a rise in unemployment

question

aggregate supply

answer

the total supply of ALL items in the economy

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aggregate demand

answer

the total demand for ALL items in the economy

question

If aggregate demand _______ aggregate supply, then _______ results

answer

exceeds, inflation

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_______ results when supply ______ demand

answer

Deflation, exceeds

question

A healthy economy occurs when supply and demand are roughly ______

answer

equal

question

economic growth

answer

when the economy is expanding AND doing well

1 of 27

question

microeconomics

answer

study of the economics of a nation as a whole

question

business cycle

answer

largely systematic ups and downs of real GDP

question

business flunctuations

answer

rise and fall of real GDP over time in a nonsystematic matter

question

recession

answer

a period during which real GDP declines for two quarters in a row, or six consecutive months

question

peak

answer

the point where real GDP stops going up

question

trough

answer

the turn-around point where real GDP stops going down

question

expansion

answer

a period of recovery from a recession

question

trend line

answer

if periods of recession and expansion did not occur, the economy would follow a steady growth plan

question

depression

answer

a state of the economy with large numbers of people out of work, acute shortages , and excess capacity in manufacturing plants

question

depression scrip

answer

currency was to such short supply that towns, counties, chambers of commerce, and other civic bodies restored into printing their own money

question

econometric model

answer

a macroeconomic model that uses algebraic equations to describe how the economy behaves

question

index of leading indicators

answer

a monthly statistical series that usually turns down before real GDP turns up

question

Identify the 2 main phrases of a business cycle.

answer

recession, expansion

question

Explain how the Great Depression compared to other recessionary periods

answer

The Great Depression was more severe than other recessionary periods. It was the worst economic decline in US history.

question

List five causes of business cycles

answer

capital expenditures, inventory adjustments, innovation and imitation, monetary factors, external shocks

question

gross domestic product (GDP)

answer

the total value of all final goods and services produced in an economy

question

per capita

answer

the amount of any number (x) per household

question

consumer price index (CPI)

answer

the monthly change in the costs of goods and services, measured using a sample of typical goods and services. This is how inflation is measured

question

inflation

answer

a rise in prices (unemployment usually decreases)

question

deflation

answer

a drop in prices (unemployment usually increases)

question

stagflation

answer

a rise in prices AND a rise in unemployment

question

aggregate supply

answer

the total supply of ALL items in the economy

question

aggregate demand

answer

the total demand for ALL items in the economy

question

If aggregate demand _______ aggregate supply, then _______ results

answer

exceeds, inflation

question

_______ results when supply ______ demand

answer

Deflation, exceeds

question

A healthy economy occurs when supply and demand are roughly ______

answer

equal

question

economic growth

answer

when the economy is expanding AND doing well

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