Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ap macroeconomics > macro mock > Flashcards

macro mock Flashcards

(74 cards)

Start Studying
1
Q

what kind of economy does the usa have?

A

mixed economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the four factors of production?

A

land, labor, capital, and entraperneurship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

define positive economics

A

objective, verifiable statements that describe the economy as it really is

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

define normative economics

A

subjective statements that attempt to make prescriptions about how the economy should work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

define an economic depression

A

deep and prolonged economic downturn

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

define an economic recession

A

falling output and rising unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

define an economic expansion

A

rising output and falling unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what does the labor force consist of

A

employment + unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is inflation

A

a rise in the overall price level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

define deflation

A

a fall in the overall price level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what does a bowled shape ppc model mean

A

increasing opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what does a linear shape ppc model mean

A

constant opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are on the x and y axises of a ppc model

A

on the y-axis, capital goods

on the x-axis, consumer goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

define comparative advantage

A

opportunity cost for producing g & s is lower than it is for other people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

define absolute advantage

A

can produce more of a good or service than others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are on the x and y axises of a supply/demand model

A

on the y-axis, price (p)
on the x-axis, quantity (q)
demand’s downward sloping
supply’s upward sloping btw!!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

when will there be a movement along the demand curve

A

when there is a change in the price of that g or s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

when will there be a shift of the demand curve

A 
change in related goods or services
change in income
change in taste
change in the number of consumers
change of expectations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

define substitutes

A

two goods for which an increase in the price of one leads to an increase in the demand for the other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

define complements

A

two goods for which an increase in the price of one leads to a decrease in the demand for the other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

define normal goods

A

a good for which an increase in income leads to an increase in demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

define inferior goods

A

a good for which an increase in income leads to a decrease in demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

law of supply

A

when the price of a good or service increases, the quantity supplied increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

when will there be a movement of the supply curve

A

a change in the price of that g or s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
when will there be a shift of the supply curve
``` change in input prices (labor, oil, used to produce g/s) change in technology change in expectations change in the number of producers changes in the taxes and subsidies change in the price of related g & s ```
26
substitutes in production
when the price of one good increases, the supply of the other decreases
27
complements in production
when the price of one good increases, the supply of the other increases
28
look at image of circular flow diagram of the economy
thanks sweetie pls continue
29
what does disposable income (yd) consist of
income + government transfers - taxes
30
what does gross domestic product (gdp) consist of
y = consumption/consumer spending + investment spending + government spending + net exports (exports - imports)
31
what does gdp include
domestically produced final g & s including capital goods, new construction, and changes to inventories
32
what does gdp not include
intermediate g & s, inputs, used goods, financial assets (stocks, bonds, etc.), and foreign produced g & s
33
what does total factor income consist of
wages + interest payments + rent + profits
34
define real gdp and its weaknesses
total value of final g & s produced in an economy during a given year, calculated by adjusting prices to those of a baseline year and it doesn't include things that cause happiness or unhappiness
35
define nominal gdp
total value of final g & s produced in an economy during a given year, calculated with prices of the current year ouput
36
what is gdp per capita
real gdp / population
37
what does private savings consist of
disposable income - consumer spending
38
what does the labor force participation rate consist of
labor force / population aged 16+
39
what does the unemployment rate consist of
unemployed / labor force
40
define discouraged workers
non-working people who have given up (like me ha)
41
define marginally attached workers
would like to work but are not currently looking
42
define underemployed workers
people who work part-time
43
the above groups are not counted as unemployed
this be me in one year i tell ya
44
relationship between gdp and unemployment
when gdp rises, unemployment falls | when gdp falls, unemployment rises
45
define frictional unemployment
unemployment due to time spent in job search trying to match yo skills to le job
46
define structural unemployment
more people searching for jobs than there are jobs available HOLLA
47
what is the natural rate of unemployment
frictional + structural
48
define cyclical unemployment
deviation of actual unemployment rate from natural rate of unemployment due to business cycle
49
what causes changes in the natural rate of unemployment
changes in labor force characteristics changes in labor market institutions changes in government policies
50
how to calculate real wage and real income
real wage: wage rate / price level | real income: income / price level
51
how to calculate inflation rate
price level year 2 - price level year 1 / price level year 1 x 100
52
define shoe leather costs
increased costs of transactions caused by inflation
53
define menu costs
real costs of changing listed prices
54
define unit-of-account costs
arise from the way inflation makes money a less reliable measurement
55
define disinflation
process of bringing inflation rate down
56
how to calculate price index
comb in a given year / comb in base year x 100
57
how to calculate gdp deflator
nominal gdp / real gdp x 100
58
what does real interest rate consist of
nominal IR - inflation rate
59
what does the mpc consist of
change in consumption / change in disposable income
60
what does the mps consist of
1 - MPC
61
what do we assume when using the multiplier
that producers are willing to supply additional output at fixed prices, interest rates are as given, and that government spending doesn't happen along with no taxes and zero exports and imports
62
what is the multiplier equation
1/MPS or 1/(1-MPC)
63
what is the consumption equation
consumer spending = autonomous consumer spending + mpc x disposable income
64
what causes shifts in the aggregate demand curve
``` changes in expectations changes in wealth size of existing stock of physical capital fiscal policy monetary policy ```
65
relationship between unemployment and wages
as unemployment increases, wages decrease &&&& vice versa
66
what causes shifts in the aggregate supply curve
``` commodity prices (oil & gas) nominal wages (if increase, shifts left & vice versa) ```
67
how are wages in the long run
fully flexible
68
define stagflation
inflation + stagnant/falling output (rising unemployment)
69
how to calculate the output gap
actual output - potential output /potential output x 100
70
what is fiscal policy
government tax and spending
71
what does expansionary fiscal policy consist of
increase in government purchases of g & s cut in taxes increase in government transfers
72
what does contractionary fiscal policy consist of
decrease in government purchases of g & s increase in taxes decrease in government transfers
73
what is the tax multiplier
mpc / mps
74
what is the spending multiplier
1 / mps

ap macroeconomics (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions