|
In an economy, when the price level falls, consumers and firms buy more goods and services. This relationship is represented by the… |
Aggregate demand curve |
|
Compared with the income approach to calculating GDP, the expenditure approach is… |
More practical |
|
The total amount of goods and services in the economy available at all possible price levels |
Aggregate supply |
|
A decline in GDP combined with a rise in the price level |
Stagflation |
|
The dollar value of all final goods and services produced within a country’s borders in a given year |
Gross domestic product |
|
The lowest point in an economic contraction, when real GDP stops falling |
Trough |
|
An increase in efficiency gained by producing more output without using more inputs |
Technological progress |
|
A prolonged economic contraction |
Recession |
|
A system that collects macroeconomic statistics on production, income, investment, and savings |
National income accounting |
|
The loss of the value of capital equipment that results from normal wear and tear |
Depreciation |
|
An example of a nondurable good is… |
A paperback book |
|
An example of capital deepening would be… |
Paying for an employee to take college courses |
|
The calculation of GDP would include… |
The income of a high school English teacher |
|
An accurate statement about the Great Depression would be that… |
It was the most severe economic downturn in the history of industrial capitalism |
|
Which of the following is an example of a final good or service? |
A cake purchased from a bakery for a wedding |
|
GDP expressed in constant, or unchanging, prices is called… |
Real GDP |
|
The main economic variables that affect business cycles include all of the following EXCEPT… |
Personal savings levels |
|
Compared with the expenditure approach to calculating GDP, the income approach is… |
More accurate |
|
The agency that maintains the National Income and Product Accounts (NIPA) is… |
The U.S. Department of Commerce |
|
An example of a durable good would be… |
A used car |
|
Products that would be used in calculating GDP include… |
Cars manufactured in Tennessee at a factory owned by a Japanese automobile company |
|
The amount of money a person has left of his or her income after taxes is called |
Disposable personal income |
|
The lowest point in an economic contraction is called… |
A trough |
Share This
Flashcard
