macroeconomics
stabilization policy refers to
goverments attempt to equalize rate of unemployment and inflation
what does the aggregate demand curve show
how the quantity of domestic product demanded changes in the price level
microeconomics is concerned with?
individual economic decision making units
the horizontal axis of aggregate demand and supply curve represents
total final output
what is gdp
total value of goods and services produced within the year and country
economic growth can be illustrated in an outward shift in ad or as...t or f
true
t or f...gdp of a country is never completley accurate bc/ of black markets
true
what does macroeconomics stress
unemployment and inflation
when is a recession likely to occour
when ad curve shifts left
when do you experience inflation
when the ad shifts outward over a period of time and the as remains constant
when does stagflation occour
when the as curve shifts inward (left)
the goverment stablalization policy causes deflation..t or f
false (inflation)
nominal gdp is measured in constant prices..t or f
false(current dollars)
inflation is defined as
a period of rising prices
sucessful stabalization to reduce inflation would shift which way
ad to left
what is aggergation
adding together different products and services (markets)
the name of the graph showing how the quantity of the output produced by all firms depends on the price level
aggregate supply curve
whats a key charchteristic of microeconomics
aggregation
what results in stagflation
as curve shifts to left
how is a goverment policy to reduce inflation illustrated
by an AD shift in, bc of reduction in gov spending
what is real gdp
constant dollars gdp
whats the clearest sign in recession
decrease in the quantity of total final output
gdp is designed to be a measure of what
economic activity conducted through organized markets
macro is the study of the size of an economy. micro study of aggregation products.
false
t or f...someone who studies economics in poland would be a microeconomist
false
following ww2 whats the economy like
more inflation prone
what is stabalization
name given to counteract inflation and recession
using todays prices to aggregate (current)
nominal gdp
vertical axis on aggregate supply and demand curve repersent
price level
real gdp
prices agreed upon base year (constant)
what do macro and micro anaylisists rely on
supply and demand
what did most economists believe before the depression
that a capatialist economy would cure recession or inflation
the study of macroeconomics focuses on
the behavior of entire communities
example of macroeconomics aggregate
the national output of cuba