Ap macro Flashcards

4342172650	Production possibility curve	Shows scarcity of resources, choice, and opportunity cost.	0
4342172651	Opportunity cost	The cost of the next best alternative in the, money, or resources, when making an economic desicison.	1
4342207267	Scarcity	The quantity available is not large enough to satisfy all productive uses.	2
4342210882	The four factors of production	Land, labor, capital, entrepeneurs/managment.	3
4342216917	Utility	Usefulness people dwrite from an activity of good.	4
4342218898	Law of diminishing marginal utility	The more you do something or use a product, the less utility you get from it.	5
4342228313	Absolute vs comparative advantage	Absolute advantage is whow has the ability to produce more output with a given amount of input(who can make the most. Comparative advantage is who has the lower opportunity cost in producing a good.	6
4342251395	Law of demand	A higher quantity of a product will be demanded at lower prices and less at higher prices.	7
4342255202	Law of supply	Suppliers will normally offer more for sale at higher prices and less at lower prices.	8
4352398950	Surplus	Excess supply; when the quantity supply is greater than what people want to purchase.	9
4352411160	Shortage	Excess demand; quantity demanded is greater than quantity supplied.	10
4352435742	Nominal values	The face value of anything right now.	11
4352437241	Real Values	The true, underlying value of something taking into account the changing value of money (accounting for inflation).	12
4352442278	Aggregates	Economic measures that summarize data across different markets for good, services, workers, and assets.	13
4352452507	Long run growth	The sustained upward trend in aggregate output over several decades. Long run growth is caused by higher labor productivity of workers.	14
4352459346	Business cycle	Short run changes between economic downturns (recessions) and economic upturns (expansions).	15
4352470043	Recession	Real GDP falling over a period of 6 months (2 quarters) usually coupled with unemployment increase. Negative AD shock often caused by a decrease in wealth, increase in price, and increase in unemployment.	16
4352493528	Depression	Prolonged, deep decline in real GDP and rise in unemployment.	17
4352505975	Inflation	Positive AD shock. Caused by an increase in wealth, price level, and decreased employment.	18
4352514666	Stagflation	Negative SRAS shock. Caused by a rise in commodity prices, increased price levels, and increased employment.	19
4352519232	Expansion	Period of recovery or growth; features rising aggreagate output (GDP) and low unemployment. Positive SRAS shock. Caused by falling commodity prices, decreased price level, and decreased unemployment.	20
4352613945	Unemployment rate	Unemployed must be looking for a job. The labor force includes those participating and looking to participate.	21
4352623699	Structural unemployment	Mismatch between people and jobs (ie. changes in technology); will always exist in growing economy.	22
4352626566	Frictional unemployment	Jobs exist, but unemployed have not found them yet, because this process takes time (this will always exist)	23
4352633320	Demand deficient(cyclical) unemployment	Not enough jobs to go around (bad); also known as cyclical unemployment	24
4352638991	Natural/full employment	Frictional and structural (expected to exist). Lowest possible unemployment rate.	25
4352657221	GDP(aggregate output)	Gross domestic production; broad measure of a nation's production; it is the value of all NEW, LEGAL, and MEASUREABLE production within a nation of goods/services in a given year. Problem: It does not account for used items, items produced elswhere, anything illegal, or intermediate products.	26
4352688271	GDP per capita		27
4352693491	Monetary policy	Trying to stabilize economy using interest rate manipulation or changing the amount of money in circulation.	28
4352777677	Fiscal policy	Tries to stabilize the economy through changes in taxes or government spending.	29
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