2. Begin Nicksey Cruz Period 2

3. $100 $200 $300 $400 $500

4. C1-$100 Capital goods

5. C1-$200 GDP: is the total value of all final goods and services produced in the economy during a given year

6. C1-$300 Inflation Rate: the inflation rate is the percent change per year in a price index-typically the consumer price index

7. C1-$400 Stagflation: is the combination of inflation and stagnating aggregate output

8. C1-$500 Automatic Stabilizer

9. BUSINESS CYCLE

10. C2-$200 unattainable Unemployment

11. C2-$300 Which graph will display an increase in unemployment? A.)B.)

12. C2-$400

13. C2-$500

14. C3-$100 1.Land 2.Labor 3.Capital 4.Entrepreneurship

15. C3-$200 1.Promote Economic growth 2.Prevent unemployment 3.Keep prices stable(limit inflation)

16. 1.Frictional unemployment 2.Structural unemployment 3.Cyclical unemployment

17. C3-$400 Shifters of AGGREGATE DEMAND

18. C3-$500 The third component is 3. An increase in Aggregate Demand will result in inflation only if economy is approaching physical capacity

19. C4-$100 What is the formula for finding marginal unit cost? How much each marginal cost= Opportunity cost Units Gained

20. C3-200 %change in GDP= Year 2- Year 1 Year 1 x 100

21. C3-$300 Unemployment Rate= Unemployment Labor Force X100

22. C3-$400 MPC: Change in consumption Change in disposable Income MPS: Change in Saving Change in Disposable Income

23. C3-$500 Multiplier= Change in real GDP Initial change in Spending

24. C4-$100 Flash DrivesChocolate U.S.A42 Germany46 NEITHER COUNRTY HAS ABSOLUTE ADVANTAGE IN FLASH DRIVES

25. C4-$200 Flash DrivesChocolate U.S.A42 Germany46 U.S.A has comparative advantage in flash drives

26. C4-$300 $40 billion

27. C4-$400 $125 billion

28. C4-$500 Increase by $200 billion

29. C4-$100 Quantity demand rises

30. C4-$200 What will happen if… the government increases taxes more than necessary to close an inflationary gap. The economy might face a possible recession

31. C4-$300 There will be an outward shift in aggregate demand

32. C4-$400 In long run, price level increase BUT GDP does not!

33. C4-$500 Aggregate Demand will not increase more than the spending