Macro Economics Vocabulary

Government or other central authority makes all economic decisions

• Mixed Economies

• Traditional Economies

• Market Economies

• Command Economies

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System

• Federal Income Tax

What happens to the money circulation, when the FED orders a tight money policy?

• more money is put out into circulation

• less money is put into circulation

• circulation stays the same

• interest rates rise

What does Inflation do to the value of money?

• Makes it go up.

• Makes it go down.

• Makes it stay the same.

Represents how goods, services, and money move through our economy.

• Circular Flow Diagram

• Supply Curve

• Demand Curve

• Supply and Demand Curve

The arena of exchange in which firms purchase the factors of production from households.

• Product Market

• Factor Market

• Price Floor

• Circular Flow

A maximum price consumers are required to pay for a good or service.

• Price Ceiling

• Equilibrium

• Market Clearing Price

• Price Floor

What is the term for the total market value of all final goods and services produced within a country in a given period?

• A) Gross Domestic Product (GDP)

• B) Net National Product (NNP)

• C) Gross National Product (GNP)

• D) National Income

Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

• A) Producer Price Index (PPI)

• B) Consumer Price Index (CPI)

• C) Gross Domestic Product (GDP) Deflator

• D) Retail Price Index (RPI)

What is the term for a situation where the quantity of goods supplied is greater than the quantity demanded at the current price?

• A) Shortage

• B) Surplus

• C) Equilibrium

• D) Deficit