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What is the formula for GDP? C + I + G + Xn

How do households participate in the resource market of the circular flow? sellers

If the price of beef rises, what will happen to the demand for chicken (a substitute good)? It will increase

It efficient and possible What two things can you determine about a point on the production possibilities curve? It efficient and possible

What causes a movement along the demand curve? Change in price

Describe the Long Run Aggregate Supply Curve Vertical

What is the formula for Aggregate Demand? C + I + G + Xn

Where is a price ceiling usually set? Below equilibrium

If the price of a good is below equilibrium what is the result? shortage

How do households participate in the product market of the circular flow? buyers

What are the factors of production? Land, labor, capital, entrepreneurship

What economic problem exists if we have both high unemployment and inflation? stagflation

Structural unemployment What type of unemployment is the result of workers having no job skills? Structural unemployment

How do you classify goods that are purchased by a company for further processing before being sold to consumers? Intermediate goods

What type of policy should be pursued to help an economy in recession recover? expansionary

If the price of a good is above equilibrium what is the result? surplus

Describe the supply curve on the money market graph. Vertical

If the MPC is .8 what is the spending multiplier? 5

What graph show the relationship between unemployment and inflation? Phillips Curve

In the United States who determines the money supply? The FED

If someone has been out of work for so long that they are no longer looking for work he is considered a . . . Discouraged worker

If the FED lowers the discount rate what will happen to the money supply? increase

If the required reserve ratio is 20% what is the money multiplier? 5

What two things are considered fiscal policy? Taxes and spending

Who specifically determines if the FED will buy of sell government bonds? FOMC

If the FED buys bonds what will happen to the money supply? increase