New EPF U 1.3

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

According to the Law of Demand, when prices drop...

• demand will also drop

• demand will increase

• quantity demanded is unchanged

• supply increases

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

Point at which supply and demand come together

• price ceiling
• excess demand
• equilibrium
• disequilibrium

The use of government spending and tax policies to influence economic conditions

• Fiscal policy
• Foreign policy
• Trade policy
• Monetary policy

Action by the government intending to create economic activity in the general public

• Fiscal policy
• Tax Increase

• Stimulus

• Subsidies

A set of tools the nation's central bank has to legally control the overall money supply and promote economic growth

• Fiscal policy

• Trade policy
• Monetary policy

• Foreign policy

A rise in prices, an increase in the average price

• deflation
• recession
• stagnation
• inflation

The U.S. central banking system

• United Nations
• International Monetary Fund
• Federal Reserve System

• World Bank