Term
| Outputs include goods but not services |
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Definition
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| A society that chooses to produce many investment goods is choosing more goods and services in the future |
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Definition
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Term
| Cars produced by General Motors in Mexico would be included in U.S. GDP |
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Definition
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Term
| Unemployment insurance benefits the macroeconomy by supporting purchasing power |
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Definition
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Term
| President Bush in 2001 wanted a tax cut to stimulate consumer spending |
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Definition
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| Chirot argues that a unique advantage that Europe had over Asia was a sophisticated irrigation system |
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Definition
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| The counterpart to the unsold output of firms is the lack of jobs for workers willing to work |
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Definition
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Term
| Increases in the prices of imported energy in 1999-2000 caused the aggregate supply curve to shift inward |
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Definition
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Term
| The U.S. has the largest economy worldwide because |
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Definition
it has a large population
&
American workers are very productive |
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Term
| Gross Domestic Product is... |
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Definition
| the money value of all final goods and services produced in a year |
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Term
| How does the U.S. compare to other advanced, industrialized economies on the issue of openness? |
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Definition
| it is one of the less open of them |
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Term
| Economies is generally concerned with... |
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Definition
| how resources are allocated among alternative goals |
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Term
| Opportunity cost is best defined as the value of |
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Definition
| the next best alternative that the decision forces one to give up |
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Term
| In economics, aggregation refers to |
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Definition
| combining many markets into one overall economy |
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Term
| The horizontal axis on the Aggregate Demand supply model measures... |
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Definition
| the level of total output |
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Term
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Definition
| is nominal GDP adjusted for changes in the price level |
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Term
| Is GDP an accurate measure of a country's well being? |
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Definition
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Term
| If the capital stock increases, then the economy can produce ______ output with the ________ amount of labor |
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Definition
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Term
| Economists & psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that... |
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Definition
| economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier |
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Term
| If part of the labor force is unemployed, the foregone goods and services are... |
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Definition
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Term
| Governments can affect the level of aggregate demand in a direct way by changing |
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Definition
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Term
| Government spending is an injection in the sense that it... |
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Definition
| increases the amount of total spending |
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Term
| The relationship between consumer spending and disposable income is called the... |
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Definition
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Term
| According to Chirot, an important factor that aided European development was |
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Definition
| A climate that allowed more productive agriculture. There was plenty of rain, without a need for irrigation systems. Parasites were killed by the cold winters. |
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Term
| Daniel Chirot states that the rise of the West was |
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Definition
| Gradual, taking place after an incubation period of a thousand years |
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Term
| Economists before Keynes assumed that equilibrium GDP with full employment occurred |
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Definition
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Term
| If inventory levels are decreasing, then we should expect business firms to |
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Definition
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Term
| "Stagflation" refers to the unwelcome combination of |
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Definition
| inflation and unemployment |
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Term
| An economist who claims that an increase in government spending would result mainly in a higher price level believe the economy is operating where |
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Definition
| aggregate supply curve is steep |
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Term
| Education reforms that result in improved reading and math skills of high school graduates as they enter the labor force would do what to the aggregate supply curve? |
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Definition
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Term
| "Fiscal Policy" is the federal government's plan for |
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Definition
| spending and taxes, designed to influence the level of aggregate demand |
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Term
| Appropriate Fiscal Policy in the U.S. in 2011 would be to |
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Definition
| increase aggregate demand |
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Term
| In contrast to changes in government spending, tax changes affect spending |
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Definition
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