Review

The circular flow model shows that GDP can be calculated by

If the Fed hikes the U.S. interest rate relative to interest rates in other countries, in the foreign exchange market the demand for dollars will________ , the supply of dollars will ________, and the exchange rate will________ .

If net taxes are less than government outlays, the government sector has a budget__________ and government saving __________.

Comparing the unemployment rate and the business cycle we see that

The crowding out effect refers to

Which of the following is true?

If the Fed is concerned with lowering__________ it will make an open market__________ of government securities, which will shift aggregate demand curve__________ .

All economic questions arise because

The marginal propensity to consume measures

If the wood used to produce houses rises in price, then the ________houses shifts ________.

Which of the following is NOT a factor of production?

The order for the chain of events for the Keynesian model is for a change in to lead to a change in__________ , which is then multiplied resulting in___________a change in __________.

-The figure above shows the market for film cameras. If the price of digital cameras falls, the equilibrium quantity of film cameras will be________ thousand cameras and the price of a film camera will be________ .

The major component of the capital and finance account is

The growth rate of productivity is a major feature of

An increase in the productivity will ________potential GDP, employment, and________ the real wage.

The labor force is defined as

If the Fed increases the quantity of money, __________economists believe that the__________ .

In the expenditure approach to measuring GDP, the components of GDP are

Jen won $900 in a lottery. She has a choice between using the money to buy a sofa, a television, or going on a vacation. If she chooses to buy a television, the opportunity cost of this decision is