Supply DemandBoardwalk Parkplace Shady Practices

Reason why international trade might lower the wages of unskilled workers in the US

Skilled labor (Human capital) of the US surpasses that of other countries

Affect on unskilled workers if minimum wage increase

The unemployment of unskilled workers would go up

Ensuring workers receive living wages would be the intended result of the government doing this

Raising minimum wage

Management would probably choose to do this if they can’t agree with union leaders

Hire non-union replacement workers (scabs)

Downturn in GDP for 2 or more consecutive quarters

Recession

Shift that will occur to aggregate supply curve if technology permanently reduces the cost of electivity

Shift to the right

Labor productivity would result in this to aggregate supply

Increase

Likely government action during a recession

Increased Spending

The Federal Reserve would lower discount rates and buy more securities on the open market to combat this

Recession

“Too much money chasing too few goods”

Inflation

If a price is inelastic, government could do this to raise more revenue

Excise Tax

This government program was established to safeguard individuals in case their banks failed

FDIC

Effect on labor productivity if more government regulations are in place

Decrease

When one group goes on strike but several other industries are effected would be an example of this concept

Economic Interdependence

Government would be likely to increase taxes if this were going on

High Inflation

As this US becomes more interdependent in the global market, this happens to our rate of imports and exports

Both Increase

If GDP went down, government would most likely do this to interest rates

Lower them

Actual GDP is lower than potential GDP during this

Recession

Inflation is factored out during real or current GDP

Real GDP

If the production of oil stopped in the US, this would be the overall result

Increased prices world wide

This is present when there are thousands of buyers and sellers and neither can influence price

Pure Competition

Studying the price of an ITEM in a perfectly competitive market would be considered part of this study

Microeconomics

Aggregate concepts about economic systems would fall under this field of study

Macroeconomics

Limiting competition would be the opposite of this type of economic system

Market Economy

This would occur if technology were to permanently lower the cost of electricity

The supply curve would shift right