Part Two
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| show | short term policy used by a national government to combat either recessions (unemployment) or inflation (aka Keynesian Demand-Side economics)
🗑
|
||||
| show | illustrates relationship between rates of inflation and unemployment; tend to move in opposite directions; implies a short term trade-off in order to reduce unemployment inflation may rise and in order to reduce inflation the unemployment rate may rise
🗑
|
||||
| Expansionary Policies | show 🗑
|
||||
| show | used to combat inflation
🗑
|
||||
| Economic Growth Policy | show 🗑
|
||||
| show | Potential GDP and Full-Employment GDP; the shift to the right shows an increase in LRAS and this illustrates an increase in long term economic growth; shift to the left reflects decrease in long term economic growth
🗑
|
||||
| show | illustrates that in the long-run there is no relationship between the rates of inflation and unemployment.
🗑
|
||||
| Natural Rate of Unemployment | show 🗑
|
||||
| show | refers to the amount of money that is available for businesses/investors to borrow and invest
🗑
|
||||
| Capital Formation | show 🗑
|
||||
| National Sales Tax (VAT) | show 🗑
|
||||
| show | increased government borrowing to finance the deficit increases the demand for Loanable Funds, and this raises Real Interest Rates; caused by increased deficits; helps in the short-run but harms in the long-run
🗑
|
||||
| show | Less government borrowing reduces the demand for Loanable Funds and lowers long term Real Interest Rates; caused by reduced deficits
🗑
|
||||
| Targeted Tax Cuts/Tax Credits | show 🗑
|
||||
| show | general rise in the level of prices (price level)
🗑
|
||||
| Consumer Price Index (CPI) | show 🗑
|
||||
| show | measures price changes in a selected (sample) group of products
🗑
|
||||
| Market Basket | show 🗑
|
||||
| show | does not measure price changes for all products (in the case of the CPI does not measure how inflation is affecting all groups); groups who do not buy the Market Basket as much as others (senior citizens) create a limitation in data
🗑
|
||||
| show | measures price changes in all products during a given year; broadest and most historically accurate measure of inflation; used to create “real” data for historical purposes; nominal GDP divided by real GDP x 100
🗑
|
||||
| Core CPI | show 🗑
|
||||
| show | another measurement of inflation; tends to be the lowest estimate of inflation because it assumes the “substitution effect” in its calculation; typically 1% lower than the official CPI used by the federal government
🗑
|
||||
| Demand-side Inflation (AKA Demand-Pull Inflation) | show 🗑
|
||||
| Supply-side inflation (AKA Cost-Push Inflation) | show 🗑
|
||||
| Hyperinflation | show 🗑
|
||||
| show | high rates of inflation combined with high rates of unemployment (aka low GDP growth)
🗑
|
||||
| show | what economists predict inflation will be over various periods of time (businesses, banks, unions, etc make decisions for the future based on these predictions)
🗑
|
||||
| Actual Inflation | show 🗑
|
||||
| show | costs businesses have when they raise their prices (first associated with restaurants); costs they incur when they raise prices (hurt by unexpected inflation)
🗑
|
||||
| Nominal Interest Rates | show 🗑
|
||||
| Real Interest Rates | show 🗑
|
||||
| show | refers to the process of adjusting statistics for the effects of inflation
🗑
|
||||
| Unemployment Rate | show 🗑
|
||||
| Civilian Labor Force (CLF) | show 🗑
|
||||
| show | individuals not working but who are no longer actively looking for full-time work because they do not believe there are jobs available for them; they are not counted in the CLF hence they are not counted in the unemployment rate
🗑
|
||||
| Underemployment (Involuntary Part-time workers) | show 🗑
|
||||
| Frictional Unemployment | show 🗑
|
||||
| show | refers to workers who have lost their jobs as a result of a recession; often referred to as “laid-off”; workers who expect to get rehired as the economy recovers
🗑
|
||||
| show | workers who have lost their jobs due to major changes in the economy or major changes in their industry; workers whose skills are no longer needed; these workers will typically not return to the job they lost
🗑
|
||||
| Full Employment | show 🗑
|
||||
| show | amount of people actually in the labor force divided by amount of people potentially in the labor force times 100
🗑
|
||||
| Factors that Affect Economic Growth | show 🗑
|
||||
| show | long term interest rates adjusted for inflation
🗑
|
||||
| Changes in the size of the Labor Force | show 🗑
|
||||
| show | Increases will increase long term economic growth (leads to more investment in capital goods/physical capital and increases the production of products)
🗑
|
||||
| show | the sum of private (households) and public (government) saving; aka money not spent
🗑
|
||||
| Changes in National Savings | show 🗑
|
||||
| Affect on "Crowding Out Effect" on Capital Stock/Loanable Funds/Capital Formation | show 🗑
|
||||
| show | This increases Capital Stock/Loanable Funds, and increases Capital Formation by lowering long term Real Interest Rates and making it less costly to borrow money for Investment.
🗑
|
||||
| Changes in Productivity | show 🗑
|
||||
| Unanticipated Inflation | show 🗑
|
||||
| show | Frictional unemployment + structural unemployment
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
rcooke
Popular Economics sets