Review

The main component of the current account is

If we compare the United States to France, we see that potential GDP per person in France is__________than that in the United States because the French__________ is greater than that in the United States.

Fiscal policy entails changes in

In the United States, over time GDP

The Laffer curve studies the relationship between

The accumulated loss of output that results from a slowdown in the growth rate of GDP per person is called the

The presence of imports__________ the size of the____________ .

Which of the following leads to an rightward shift in the short-run Phillips curve? I. a reduction in inflationary expectations. II. an increase in the natural rate of unemployment. III. an increase in the velocity of circulation

Keynesian economists believe that

The opportunity cost of a good is

An increase in the amount of capital leads to ________the aggregate production function________ and a technological advance leads to ________the aggregate production function.

If the U.S. interest rate differential ________, the demand for dollars and the U.S. exchange rate________.

Which of the following is true? I. The quantity theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of potential GDP. II. If the Fed decreases the federal funds rate, aggregate demand increases. III. The Fedʹs monetary policy works by shifting the short-run aggregate supply curve.

Which of the following increases the demand for chicken?

If productivity constantly increases, then the real wage rate________ and employment________ .

If the Fed makes an open market of securities, in the quantity theory M and V________

If the Fed is concerned with lowering__________ it will make an open market__________ of government securities, which will__________real GDP.

At full employment,

The multiplier effect

An example of a fiscal policy designed to decrease real GDP is