Macroeconomics Flashcard

Front

What is Macroeconomics? What do economic indicators such as GDP and CPI have to do with Macroeconomics?

Back

Study of the economy as a whole, including GDP and CPI

Front

Which of the following is an element of GDP? Consumer Spending, Taxation, Savings, Imports

Back

Consumer Spending

Front

What is not included in GDP? Government Spending, Investment, Net Trade

Back

Intermediate Products

Front

What are final goods and services?

Back

Goods and services sold to the end user

Front

What is inflation?

Back

Increase in the general price level of goods and services

Front

How does inflation impact consumers’ purchasing power?

Back

Decreases purchasing power

Front

What is cost-push inflation?

Back

Inflation caused by increased production costs

Front

What is deflation?

Back

A decrease in the general price level of goods and services

Front

What causes deflation? Options: Increased consumer spending, Decreased consumer demand, Increased government spending, Increased production costs

Back

Decreased consumer demand

Front

How can deflation lead to a recession?

Back

By decreasing consumer spending