1 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt Loanable Funds Foreign Exchange Investment or “Investment”? The Curves of Phillip Pretty much everything else

2 The 2 vertical supply curves

3 What are the supply of money and the long run aggregate supply curve?

4 An increase in government spending does this in the loanable funds market.

5 What are increases the demand for loanable funds?

6 Leads to an increase in the supply of loanable funds.

7 What is an increase in saving?

8 Formula to find the real interest rate.

9 What is the nominal interest rate minus the expected rate of inflation?

10 Reason why recessions create or enlarge budget deficits even without changes to fiscal policy.

11 What is tax revenues fall because incomes fall?

12 Controls the supply of money

13 What is the Federal reserve Board?

14 Change to investment when interest rates rise.

15 What is investment decreases?

16 The change to the value of the dollar in the foreign exchange market when interest rates rise?

17 What is the dollar appreciates?

18 Reason why the dollar depreciates when interest rates fall.

19 What is U.S. financial assets become less valuable to foreigners so the demand for the dollar falls?

20 Change to the supply OR demand for yen if there is an increase in the demand for U.S. dollars.

21 What is supply of the yen will increase?

22 Purchases of new machinery and factories by businesses

23 What is investment?

24 Money flowing into a country to purchase that country’s bonds.

25 What is capital flow?

26 Effect on investment, the value of the dollar in the foreign exchange market, and net exports from an increase in the real interest rate.

27 What are decrease, increase (appreciate), decrease?

28 Changes to a nation’s capital stock are caused directly by this.

29 What are changes in investment?

30 Specific monetary and fiscal policy combination that would increase investment and keep the price level constant.

31 What is buy bonds/decrease discount rate/decrease reserve requirement AND increase taxes/cut government spending ?

32 Short run relationship between inflation and unemployment.

33 What is inverse?

34 Long run relationship between inflation and unemployment

35 What is there is none?

36 X-axis intersection of the long run Phillips Curve

37 What is the natural rate of unemployment?

38 Caused by changes to the natural rate of unemployment

39 What are shifts of the long run Phillips Curve?

40 Effects on the short run Phillips Curve of changes to aggregate demand and aggregate supply, respectively.

41 What are movements along the SRPC and shifts of the SRPC?

42 The 4 components of aggregate demand.

43 What are consumption, investment, government purchases, and net exports?

44 The relationship between the marginal propensity to consume and the spending multiplier.

45 What is direct (positive)?

46 Equal increases to government spending and taxes will have this affect on GDP?

47 What is it will increase?

48 Changes to the nation’s real interest rate and capital stock if investment demand increases?

49 What is they both increase?

50 Value of the market basket in year 2 divided by the value of a market basket in the base year.

51 What is a price index?