1. 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 Economic Theories Phillips Curves Economic Growth Long run Aggregate Supply Potpourri

2. 2 Theory that believes that output and employment always return to their full- employment level in the long run

3. 3 What is Classical Economics?

4. 4 According to Keynesians, they are responsible for solving short-run economic problems

5. 5 What is the government?

6. 6 Viewpoint that believes that discretionary monetary or fiscal policy should be used to solve short-run economic problems DAILY DOUBLE!!!

7. 7 What is “mainstream” Keynesian economics?

8. 8 Monetarists believe that this is the government’s only role in the economy

9. 9 What is the monetary rule?

10. 10 Supply side economists believe that tax cuts improve the economy b/c they provide workers with these.

11. 11 What are incentives to work harder?

12. 12 The Phillips Curve compares these 2 macroeconomic measures

13. 13 What are inflation and unemployment?

14. 14 Shape of the short-run Phillips Curve?

15. 15 What is downward-sloping?

16. 16 The long-run relationship between inflation and unemployment

17. 17 What is none?

18. 18 Term used to describe simultaneously rising inflation and unemployment

19. 19 What is stagflation?

20. 20 An aggregate supply shock will have this effect on the short-run Phillips Curve

21. 21 What is a rightward shift?

22. 22 Effect on the production possibilities frontier of an increase in 1 of the 4 supply factors DAILY DOUBLE!!!

23. 23 What is a rightward shift of the curve?

24. 24 Reason why an increase in the long-run aggregate supply curve also increases aggregate demand

25. 25 What is the fact that there are either more workers who are also consumers or that workers are earning higher incomes?

26. 26 Effect on the production possibilities frontier of an increase in the demand and efficiency factors

27. 27 What is movement from inside the curve to the edge of the curve?

28. 28 3 of the 4 supply factors

29. 29 What are: 1.Increases in the quantity and quality of natural resources 2.Increases in the quantity and quality of human resources 3.Increases in the supply of capital goods 4.Increases in technology

30. 30 Worker-hours x labor productivity

31. 31 What is real GDP?

32. 32 Output level of long-run aggregate supply

33. 33 What is full-employment GDP?

34. 34 Effect on short-run aggregate supply when output falls below full-employment GDP

35. 35 What is a rightward-shift (increase)?

36. 36 Long-run effect on prices of a short-run increase in aggregate demand

37. 37 What is an increase?

38. 38 Long-run output level when there is a short-run increase in aggregate demand

39. 39 What is full-employment GDP?

40. 40 The reason why aggregate supply shifts to the left when demand-pull inflation occurs

41. 41 What is because wages rise?

42. 42 Effect on long-run aggregate supply of a rightward shift of the production possibilities frontier

43. 43 What is an increase?

44. 44 Topic of Chapter 18

45. 45 What is the deficit and the debt?

46. 46 The name of the effect caused by the government’s budget deficits that increase interest rates

47. 47 What is the crowding-out effect?

48. 48 Name of the curve used as a basis for much of supply-side economics

49. 49 What is the Laffer Curve?

50. 50 Economic decision that will lead to an increase in capital stock that will shift the long- run aggregate supply curve to the right

51. 51 What is the choice to produce more capital goods and fewer consumer goods?

52. 52 Chapter covered on the next chapter quiz Final Jeopardy category – The Calendar

53. 53 What is Chapter 6?

54. 54 Date of the AP Macroeconomics exam Final Jeopardy category – The Calendar

55. 55 What is May 15?

56. 56 Increase in America’s national debt over the last 7 years, to the nearest trillion Final Jeopardy category – The National Debt

57. 57 What is $4 trillion?