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ECO 231: MIDTERM REVIEW

Teacher: Professor Glenda Evans
Horizontales
A decline in the general level of prices.
This group consists of those who are able and willing to work.
This diagram illustrates the continuous flows of goods and services, resources and money.
Phase of the business cycle where economic activity "bottom out" at the lowest levels.
The largest share of GDP is consumption expenditures by __________.
The relationship between the price and the quantity supplied.
This group of people have a much higher unemployment rate than adults.
Activities that do not take place in a market and therefore understate GDP.
Personal income less personal taxes.
This approach to calculating GDP is referred to as the output approach.
How consumers register their wants in the market through spending.
Restricts options and demands choices.
A good that can be used in place of another.
An economic resource category for consisting of ones' physical and mental activities.
Many prices of goods and services are slow to change or inflexible.
The economic system known as capitalism or the mixed economy.
The dollar value of all goods and services produced in a country using current dollar prices.
Income adjusted for inflation.
Verticales
The amount of a good or service buyers are willing and able to purchase at a specified price.
This type of demand shock refers to a situation where demand is lower than expected.
Sixty percent of personal consumption expenditures.
Indicates that for every 1 percentage point the actual unemployment rate exceeds the actual rate, a negative GDP gap of 2 percent exists.
A measure of the price of a market basket compared to the same basket in a base year.
Extraordinarily rapid inflation.
An economic system in which the government owns most of the resources.
A minimum price fixed by the government.
This approach to calculating GDP is referred to as the earnings approach.
The happiness or satisfaction obtained from consuming a good or service.
The "cost" or sacrifice of alternative choices.
"Search and wait" unemployment.
A period where economic activity is declining.
Unexpected _______ events can cause fluctuations in the business cycle.
The Bureau of ________ Analysis compiles the data for the US NIPA accounts.
Most goods are _______ goods. The demand varies directly with income.