1. Jeopardy!
Begin

2. Aggregate
Demand
Aggregate
Supply
Types of
Unemploy-
ment
Nominal
GDP
Real
GDP
PPF/PPC
$100
$100
$100
$100
$100
$100
$200
$200
$200
$200
$200
$200
$300
$300
$300
$300
$300
$300
$400
$400
$400
$400
$400
$400
$500
$500
$500
$500
$500
$500

3. - $100 What does aggregate demand represent?
C1-$100
the total demand of goods and services in an economy

4. - $200 the aggregate supply curve
What extra information do you need to maximize the usefulness of the aggregate demand curve?
C1-$200
the aggregate supply curve

5. - $300 What is the slope of the aggregate demand curve? Downward

6. - $400 What are the shifters of aggregate demand?
C1-$400
1) changes in consumer spending
2) changes in investment
3) changes in government spending
4) changes in net exports

7. - $500
Which way does the expansionary policy shift the aggregate demand curve?
C1-$500
Left

8. - $100 What does the aggregate supply curve show?
total supply of goods and services in an economy

9. - $200 What is the slope of the short-run aggregate supply curve?
Upward

10. - $300 What is the slope if the long-run aggregate supply curve?
Vertical

11. - $400 What is the slope of the short-run aggregate supply curve? 1/a

12. - $500
Based on the short-run aggregate supply curve, what happens when price level increases?
C2-$500
Output increases as well

13. - $100 What is inflation? A decrease in purchasing power of the dollar

14. - $200 What is the consequence of a small amount of
inflation over the course
of many years?
C3-$200
A large increase in price
level

15. - $300 What type of uneployment occurs becuase of the buisness cycle?
Cyclical unemployment

16. - $400 What type of unemployment occurs because people are
between jobs?
C3-$400
Frictional unemployment

17. - $500 How do you calculate unemployment? unemployment/sum of
employed & unemployed

18. - $100 What is nominal GDP? the GDP evaluated at the
C4-$100
the GDP evaluated at the
current market prices

19. Quantity and changes in prices
- $200
What two changes does
nominal GDP capture?
C3-200
Quantity and changes in prices

20. - $300 What is the difference between nominal GDP and real GDP?
Change in price level
from base year to current
year

21. - $400 Which GDP (nominal or real) is more useful when comparing sheer
output?
C3-$400
Nominal

22. - $500
How do you calculate the
nominal GDP?
C3-$500
C+I+G+Xn

23. - $100 What is real GDP? measure that reflects the values and services
produced in one year and
it is adjusted to inflation

24. - $200 Why is real GDP better than nominal GDP?
C4-$200
it accounts for changes in
price level and presents a
more accurate figure

25. - $300 What two elements does real GDP account for
that nominal doesn't?
C4-$300
inflation & deflation

26. - $400
What is real GDP not
influenced by?
C4-$400
changes in prices

27. - $500
How do you calculate
real GDP?
C4-$500
GDP/inflation

28. - $100 Why are PPCs concave? because of distribution of
resources to the
production of goods and
services isn't equal

29. - $200 What basic principle is the PPC demonstrating?
that all resources in an
economy are at use and
that more than one good
can be produced when
there is less of the other
product being produced

30. - $300 What important information does the PPC help to determine?
the quantity of the
production of a
nonesstial item without
disturbing the production
of thee essential item in
that economy

31. - $400 What can we conclude when there is a shift outwards in the PPC?
there is a growth in the economy

32. - $500 What does an inward shift in the PPC indicate?
the economy is shrinking due to a decline in the resources and production capability