1. Get ready to play giant Jenga review!

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

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

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

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

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

7. Describe the Long Run Aggregate Supply Curve
Vertical

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

9. Where is a price ceiling usually set?
Below equilibrium

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

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

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

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

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

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

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

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

18. Describe the supply curve on the money market graph.
Vertical

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

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

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

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

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

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

25. What two things are considered fiscal policy?
Taxes and spending

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

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