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Econ 102 > econ final > Flashcards

econ final Flashcards

1
Q

Change in Rates

A

Shifts AD

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2
Q

change in labor

A

shifts SRAS and LRAS

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3
Q

change in technology

A

shifts LRAS and SRAS

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4
Q

Change in taxes

A

shifts AD

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5
Q

change in capital

A

shift SRAS and LRAS

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6
Q

Change in gov. spending

A

shifts AD

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7
Q

change in exchange rates

A

Shifts AD

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8
Q

change in input costs

A

shifts SRASq

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9
Q

Wealth effect

A

Shifts AD

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10
Q

change in expected price level

A

Shifts SRAS

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11
Q

change in natural resources

A

shifts LRAS

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12
Q

optimism/pessimism

A

Shifts AD

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13
Q

adjustments to past expected price level

A

Shifts SRAS

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14
Q

three components of the industrial production index

A

manufacturing, utility, mining

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15
Q

A fortiori

A

From the stronger

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16
Q

what does the fed do to fix falling stock prices

A

buy bonds to lower the interest rate

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17
Q

what does the fed do to combat rising stock prices

A

sell bonds to raise the interest rate

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18
Q

what happens to interest rates when money supply increases

A

interest rates fall and AD shifts right

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19
Q

what do deficits do

A

they increase interest rates and decrease investments

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20
Q

classical model is appropriate for short run or long run

A

long run: real and nominal variables are determined separately in the long run

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21
Q

Phillips curve: policy makers would reduce inflation but raise unemployment if they:

A

decrease the money supply

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22
Q

ex vulgus scientia

A

from crowd, knowledge

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23
Q

If there is excess demand for money, then people will

A

withdraw money from interest bearing accounts, and the interest rate will rise

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24
Q

a fall in the price level results in firms having:

A

higher prices, which depresses their sales

25
Q

increase in the price level is a reduction in what spending

A

household consumption and investment

26
Q

lex parsimonia

A

law of succintness

27
Q

liquidity preference theory

A

people have a preference for holding money in case of unforeseen expenses or as a precautionary measure.

28
Q

what is measured on the philips curve

A

inflation rate vs. unemployment

29
Q

how many points falling from the consumer confidence index means the economy will enter a recession

A

30

30
Q

aggregate demand curve shows that a decrease in the price level

A

increases the real value of goods and services demanded in the economuy

31
Q

Real GDP

A

variable most commonly used to measure short-run economic fluctuations. it is almost impossible to predicrt these fluctuations with accuracy

32
Q

after an election…

A

inflation rises, so the central bank raises interest rates

33
Q

when taxes decrease, consumption

A

increases as shown by a shift of the AD curve to the right

34
Q

classical macroeconomic theory, changes in the money supply affect

A

variables measured in terms of money but not variables measured in terms of quantities or relative prices

35
Q

what is not included in the 10 components of the LEI

A

unemployment rate

36
Q

suum cuique tribuere

A

to render to every man his due

37
Q

what helps to explain the slope of the AD curve?

A

the exchange rate effect, the wealth effect, the interest rate effect

38
Q

oil prices fall due to

A

rising value of the dollar, slower global growth, and rising trade war disputes

39
Q

if the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must

A

decrease the money supply so interest rates rise

40
Q

the sticky wage theory suggests that when the price level rises more than expected…

A

production is more profitable and employment rises

41
Q

what shifts money demand to the left?

A

decrease in the price level

42
Q

why do some people question the phillips curve?

A

it doesn’t apply in the long run

43
Q

if speculators gained greater confidence in foreign economies so that they wanted to buy more assets of foreign countries and fewer US bonds,

A

the dollar would depreciate which would cause AD to shift to the right

44
Q

sic semper tyrannus

A

thus always to tyrants

45
Q

quot capita tot sensus

A

as many heads so many options

46
Q

petitio principii

A

request of the beginning

47
Q

ex facie

A

from the face

48
Q

a contrario

A

from the opposite

49
Q

ad absurdum

A

to absurdity

50
Q

ad hominem

A

to the man

51
Q

a fortiori

A

from the stronger

52
Q

scio me nihil seire

A

i know that I know nothing

53
Q

sapiente sat

A

enough for the wise

54
Q

rem acu tetigisti

A

you have touched the point with the needle

55
Q

alea iacta est

A

the die has been cast

56
Q

lex parsimoniae

A

law of succintness

57
Q

per capita

A

by heads

58
Q

rerum caugnosere causas

A

to learn the causes of things

59
Q

una hurundo no facet vere

A

one swallow does not make summer

Econ 102 (3 decks)

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