An increase in the price level, with no other change, shifts the money demand curve rightward,
and raises the equilibrium interest rate
A rise in the price level causes a decrease in equilibrium GDP
Aggregate demand (AD) cur
Wealth constraint at any point in time, total wealth is fixed
A households quantity of money demanded is the amount of wealth that the household chooses
to hold as money, rather than as other assets
When you hold money, you bear an o
Money an asset widely accepted as a means of payment
Means of payment anything acceptable as payment for goods and services
- Coins and paper currency (cash), travelers checks, and funds held in checking accounts
- Credit card payments
Countercyclical fiscal policy a change in government purchases or net taxes designed to reverse or
prevent a recession or a boom
Tax multiplier the amount by which real GDP changes for each one-dollar change in net taxes
Boom a period of time during which real GDP is above potential GDP
Because shifts in the labor demand curve are not very large from year to year, the classical model
cannot explain real-world economic fluctuations through shi
The most straightforward way to measure a nations standard of living is real gross domestic
product per capita, or real GDP divided by the population
The rule of 70 tells us that if a variable is growing by X percent per year
Classical model a macroeconomic model that explains the long-run behavior of the economy
Market clearing adjustment of prices until quantities supplied and demanded are equal
Labor supply curve indicates how many p
Price level the average level of prices in the economy
Index a series of numbers used to track a variables rise or fall over time
- Value of measure in current period / value of measure in base period x 100
- An index will always equal
Economists, and society at large, agree on three important macroeconomic goals: economic
growth, full employment, and stable prices
Economic growth the increase in our production of goods and services that occurs over long per
Price ceiling a government imposed maximum price in a market
- A price ceiling creates a shortage and increases the time and trouble required to buy the good,
while the price decreases, the opportunity cost may rise
- Always draw and eff
Aggregation the process of combining distinct things into a single whole
Market a group of buyers and sellers with the potential to trade with each other
Circular flow a simple model that shows how goods, resources, and dollar payments f
Economics the study of choice under conditions of scarcity
Scarcity a situation in which the amount of something available is insufficient to satisfy the desire for it
Opportunity cost what is given up when taking an action or maki
Discussion 2 - shift/changes in supply or demand. Find an example in an online article of one of the
following four possible initial shift or change in supply/demand:
1. Shift of the demand curve and which direction
2. Shift of the supply curve and which
1. Which of the following illustrates the law of demand?
e. a and c
2. If Max's demand for hot dogs falls as his income rises, then for Max hot dogs are
b. an inferior good.
3. As the price of good A rises, the demand for good B rises. Ther
For years now Japan has faced problems with the popular ore-ore sagi (Its me! Its me!) scam.
A man will make phone calls, say Hey, its me! and if they get lucky the victi
This article is about something that is related to the earthquake and flood that happened on
March 11, 2011.
In the Fukushima prefecture in Japan a nuclear plant spewed out more radiation than the at
"What has the Diet been doing as 70,000 people are forced to evacuate and wander
outside of their homes?"
But his expression became grave when discussing the 20-km no-go zone in Fukushima,
ECON1160 Assignment 1
Your answers should be submitted from the quizzes page of the course. The link from the quizzes
page is: Assignment 1.
Though your answers are submitted through the quizzes link, this is not a test.
This assignment is due Aug 31 by 1
Market Failure a situation in which the market does not provide the ideal or optimal amount of a good
Externality a side effect of an action that affects the well-being of third parties
Negative Externality the condition when
Antitrust Law - legislation passed for the stated purpose of conrolling monopoly power and preserving and
Sherman Act (1890), Clayton Act (1914), Federal Trade Commission Act (1914), RobinsonPatman Act (1936), Wh
Market Structure The environment of a firm, whose characteristics influence the firms pricing and output
There are many sellers and many buyers, none of which is large in relation to a total sales or
Price Elasticity of Demand A measure of the responsiveness of quantity demanded to changes in price.
More specifically, it addresses the percentage change in quantity demanded for a given percentage
change in price. (Keep in mind percen
The willingness of buyers to purchase different quantities of a good
At different prices
During a specific time period (per day, week, etc.)
Market any place people come together to trade
Law of Demand as the price of a
Good anything from which individuals receive utility or satisfaction
Ex. Computer, car, watch, TV set, friendship, love, smoking
Can be tangible or intangible
Bad anything from which individuals receive disutility or dissatisfaction
What business did you select?
What type of financing did you choose?
Own money (first time bank loan)
How many stations did you have?
8 stations throughout the entire game, though they changed
- 5 3D
- 2 robot comics
- 1 video game
4 video ga