Use the choices below to fill in the statements below....1. Supply side trickle down2. Supply 3. GDP

4. Land, Labor, Capital.

5. Discretionary

6. Economics

7. A. What goods and services to produce, B. How to produce them, C. Who gets them

8. Microeconomics

9. Adam Smith

10. Opportunity cost

11. Demand

12. Macroeconomics

13. Trumpnomics

14. Discount rate

15. Federal Reserve

16. Peak, recession, bottom, expansion.

17. Discouraged workers

18. Deficit

19. Economist in chief

20. Real

21. Business Cycle

22. Josef Schumpeter

23. John M. Keynes

24. Defense

25. Nominal

26. Mandatory entitlement

27. Surplus

28. Classical model

29. Bill Clinton

30. Protect

31. Government spending and taxation

32. Fed funds rate

33. Debt

34. Reaganomics

35. Inflation

36. Monetarist

37. Reserve requirement ratio, discount rate, and Open market operations

38. Laissez Faire

39. Roosevelt , Kennedy, Obama

40. TARP, American Recovery and Reinvestment Act ( G up) and Fed rate cuts.

41. Keynesian model.

42. Milton Friedman

43. Free and competitive

44. Keynesian bottom up

45. Hoover, Coolidge, and Harding.

46. Tariff

47. Laffer

48. Comparative advantage

49. Demographic Tsunami

Exercise : Write number in space below. Use each # once

Use the #s from page 1. Use each # once.

_economics_ is the study of how best to allocate scarce resources among competing uses. The 3 basic resources are __Land,labour,capital_. If you use scarce resources to produce guns (military goods), you lose the opportunity to use those resources to go Mars. Every choice involves a tradeoff or _Opportunity cost __. The 3 choices of every nation are _What goods to produce , how to produce them ,who gets them _ For the most part we rely on _________ markets to answer these 3 questions. Apple produces I Mac computers and not typewriters because consumers want I macs and not typewriters and Apple can make a profit by devoting resources away from typewriters and into I Mac computers. Thus in a capitalistic system firms use scarce resources to _________ goods and services consumers _____. If they do not they will be out of business. In this way the right choices about scarce resources are made.

The founder of Micro Economics was ___________ who wrote the Wealth of Nations in 1776. ________ is the branch of economics that is concerned with individual firms, consumers, markets and industries. The founder of Macroeconomics was ____________who wrote the General Theory in 1936. _________ is the branch of economics that is concerned with economic indicators (GDP, unemployment, inflation), the federal government budget, fiscal policy and monetary policy / Presidential economics. Macro Economics is concerned with the overall performance of the economy and in general the President or the ________is responsible for economic security . The total market value of all final goods and services produced within a nation's borders is ______ / our #1 economic indicator.

The time series of GDP (short term fluctuations with a long term trend line is the ___________. The 4 phases of the business cycle are __________. The way the government calculates the unemployment rate __________ or job force dropouts are not counted as unemployed since they are not actively seeking employment and thus the unemployment rate may understate the true employment rate.

Entrepreneur Steve Jobs creating the new personal computer industry with the Apple II computer and the smart phone industry with the Apple IPhone and entrepreneur Henry Ford creating the auto industry (putting blacksmiths o out of work) relates to the creative destruction theory of Austrian economist ___________

This is capitalism renewing itself over the long term providing economic growth.

_______is an increase in the price of goods and services measured by the Consumer price index or CPI. GDP adjusted for inflation is _______ GDP and GDP not adjusted is ________ GDP.