AG_EC 1042: Exam 1
23 Cards in this Set
| Front | Back |
|---|---|
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components of GDP
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consumption
consumer expenditures
investment
net exports
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primary goal of macro
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economic growth
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if price decreases, demand will most likely ________
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increase
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when income increases, _______ also increases
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demand
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if the productivity of inputs used to produce a good increases...
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supply increases
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what must happen if there is a shortage in a market?
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price must rise to restore equilibrium
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difference between deficit and debt
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deficit is annual and debt is total owed
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what does an increase in real GDP tell us?
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the economy is growing (more output or more income)
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incentive
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designed motivating factor
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consumer surplus
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net benefit to consumers
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how do you find surplus
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Qs-Qd
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when price falls, the demand cure shifts which direction?
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right
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if production increases, what will happen to prices
|
prices will reduce
|
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demand slopes ____ and supply slopes _____
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down; up
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circular flow model
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flow of income that is exchanged for final goods and factors of production
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target rate of inflation
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0-2%
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the real GDP growth rate required to reduce unemployment
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2.5%
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target unemployment rate
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4-6%
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elasticity
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percent of change in quantity/percent of change in other variable
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current unemployment rate
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7.9%
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what did the fiscal cluff bill to
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raise taxes by increasing tax rate on estates, limiting the personal exemption and deductions on wealthy, raising the top rate on capital gains, increasing the highest income-tax rate
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opportunity cost
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value of highest-valued alternative that is forgone in making a choice
|
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a decrease in the number of sellers shifts the supply curve in what direction?
|
left
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AG_EC 1042: Exam 1