Vocabulary – Macroeconomics, Night.

At least half the questions for each quiz will be vocabulary questions.

* Not in textbook

1.1

Economics*(N1BB S7)

Scarcity

1.2

Macroeconomics

Microeconomics

1.3

Model*

1.4

Command economy

Market

Market economy

Private Enterprise

Traditional economy

Underground economy

2.1

Budget constraint

Opportunity cost

2.2

Law of increasing opportunity

cost*(N1AB S62)

Production possibilities frontier

Comparative advantage

------Quiz #1 Line

Allocative efficiency

Productive efficiency

3.1

Demand curve

Demand schedule

Demand

Equilibrium price

Equilibrium quantity

Equilibrium

Law of Demand

Law of Supply

Price

Quantity demanded

Quantity supplied

Shortage

Supply curve

Supply schedule

Supply

Surplus

3.2

Ceteris paribus

Quantity demanded

Complements

Inferior goods

Normal good

Shift in demand

Substitute

------Quiz #2 Line

Quantity supplied

Factors of production

Inputs

Shift in supply

3.4

Price ceiling

Price control

Price Floor

4.3

Incentive Problem*(N3BB S175)

Information Problem*(N3BB S175)

Invisible hand*(N3BB S175)

6.1

Circular flow diagram*(N3AB S19)

Double counting

Final good or service

Gross domestic product (GDP)

Intermediate good

Service

Trade balance

Trade deficit

Trade surplus

Consumption expenditures*(N3AB S12)

Investment expenditures*(N3AB S12)

Government expenditures*(N3AB S12)

6.2

Nominal value

Real GDP*(N3AB S28)

Real value

------Quiz #3 Line

6.3

Business cycle

Depression

Peak

Trough

6.4

Exchange rate

GDP per capita

6.5

Standard of living

------Unit #1 Line

8.1

Discouraged workers

Labor force

Unemployment rate

8.3

Cyclical unemployment

Implicit contract

Adverse selection of wage cuts

Short-run in macroeconomics

8.4

Frictional unemployment

Structural unemployment

Long-run in macroeconomics

Natural rate of unemployment

Natural real GDP

9.0

Inflation

9.1

Basket of goods and services

Index number

Base year

9.2

Consumer price index

Substitution bias

Quality/new goods bias

Core inflation index

GDP deflator

9.3

Deflation

Hyperinflation*(N6BB S33)

9.5

Cost-of-living adjustments (COLA)

Adjustable-rate mortage (ARM)

Indexing

------Quiz #4 Line

11.2

Aggregate demand/aggregate supply model

Aggregate supply

Aggregate supply curve

Natural real GDP (potential GDP

or full employment GDP)

Short-run aggregate supply curve

Long-run aggregate supply curve

11.3

Stagflation

12.1

Recessionary gap

Inflationary gap

12.2

Sticky wages and prices

Marginal propensity to

consume*(N7AB S17)

Expenditure multiplier

------Quiz #5 Line

12.3

Phillips curve

Expansionary fiscal policy

Contractionary fiscal policy

17.6

Crowding out

Implementation lag

Legislative lag

Recognition lag

17.3

Budget deficit*(N8AB S92)

National debt

------Quiz #6 Line

7.1

Industrial revolution

Rule of law

Marginal tax rate*(N9BB S117

Supply-side economics*(N9BB S117)

7.2

Physical capital

------Unit #2 Line

13.1

Neoclassical perspective

Expected inflation

Natural rate of unemployment*(N11BB S8)

Natural real GDP*(N11BB S8)

Rational expectations

Adaptive expectations

------Quiz #7Line

14.1

Barter

Commodity money

Double coincidence of wants

Fiat money

Money

14.2

Demand deposits

M1 money supply*(N12BB S85)

M2 money supply*(N12BB S86)

Savings deposits

14.3

Bank*(N12AB S91)

Fractional reserve banking*(N12AB S95)

14.4

Money multiplier formula*(N12AB S103)

15.1

Central bank

Federal Reserve System*(N12AB S108)

15.2

Bank run

Deposit insurance

Lender of last resort

15.3

Open market operations

Reserve requirement

Discount rate

15.4

Contractionary monetary policy

Expansionary monetary policy

Federal funds rate

Quantitative easing

------Quiz #8Line

15.5

Equation of exchange*(N14BB S48)

Excess reserves

Monetarists*(N13AB S70)

Monetary Base*(N13AB S33)

Velocity

------Quiz #9Line

20.1

Gains from trade

16.1

Appreciating

Depreciating

Foreign exchange market

16.2

Purchasing power parity

------Unit #3 Line