Macroeconomics Trivia at Lightspeed

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Can you name the Macroeconomics potpourri at lightspeed?

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Hint or DefinitionAnswer (lower case only)Extra Info
inflation will tend to stay at the same rate unless there is a supply-side or demand-side shock
tax where when your income goes up, the percentage of your income paid in taxes stays the same
manipulate the aggregate supply curve instead of the aggregate demand curve. Since GDP goes up, unemployment goes down. Since the LOP goes down, inflation goes down.
Inflationary Gap
the stuff we buy
other internal mechanism that translates external shocks into waves of business cycle having to do with increased demand leading to increased investment
MPSjust the name
RGNP definitionno commas RGNP = GNP x (100/CPI)
Believe gov't should intervene in the economy using monetary policy, shrinking the money supply to fight inflation and augmenting the money supply to fight unemploymentplural
NNP definitionno commas
unemployment caused by a mismatch of jobs and workers, either because of geography or skills
Something that is money because the gov't says it's money
Taxes are a disincentive. Increase tax rate, at a point people will stop working extra due to disincentive, so gov't revenue will decrease
a horizontal line because the economy is far enough below PO that there are enough surplus workers and surplus factory capacity, so businesses can increase production without raisi
Tax where when your income goes up, the percentage of your income paid in taxes goes down
(unemployed people actively seeking a job)/(unemployed job seekers + employed)
MPS definition
unemployment caused by a downturn in the business cycle
Assuming a fixed money supply, an increase in prices will result in an increase in the transactions demand for money
RNDP definitionno commas RNDP = NDP x (100/CPI)
money required to buy goods and services (necessary to complete transactions)
If you side with labor, businesses raise prices, so workers have to demand higher wages, so businesses have to raise prices again to increase in cost of doing business, etc. If you
GNP definitionno commas
total of all past debt minus the past surpluses, if the surpluses were used to pay down the debt
keynesian phase, classical phase, intermediate phase
Hint or DefinitionAnswer (lower case only)Extra Info
Components of AS
Trading of goods and services for other goods and services
M1 and savings accounts, small-time deposits, and certain other accounts like money market mutual fundsalso known as M2
GDP definitionno commas
Suggests inverse relationship between inflation and unemployment. If you want lower unemployment, you have to accept higher inflationalso a result of stagflation
Equilibrium in terms of savings, investment, taxes, gov't spendingno space, all caps
Economy determines that a particular commodity will be used as money
Argue that by the time the gov't has recognized the problem, taken steps to fix the problem, and those steps have taken effect, the economy will have already corrected itself. Gov'plural
NDP definitionno commas
NAIRUmeans that you can decrease unemployment to a certain point (NAIRU) before having increasing inflation
a payment, usually by the government, for which no goods or services are received in return
falling in business cycle
rising in business cycle
If gov't comes in with increased demand for money, interest rates will go up, so GDP will decreaseForeign countries help keep this from happening because they add a lot of money to the supply
unemployment caused by people entering or reentering the job market or voluntarily between jobsinclude 'unemployment'
result of gov't deficit
The Fed. has a portfolio of gov't bonds which they buy and sell on the open market
The interest rate that the Fed. charges member banks for loans
high point in business cycle
The interest rate that banks charge other banks for overnight loansFed. sets a target rate
RGDP definitionno commas. RGDP = GDP x (100/CPI)
People who use the service pay the tax. People who don't use the service don't pay the tax.
A tax on the value added at each stage of production
Deflationary Gap
A vertical line at or usually shown just beyond PO because there is a limit to what the economy can produce. At that point, if people want more, the only thing that can happen is t
A measure in the change of prices, both in inflation and deflation, from the base yearFound by attaching prices to a lot of goods and services. CPI=(current year prices/base year prices)x100
Hint or DefinitionAnswer (lower case only)Extra Info
measure of how gov't debt has increased GDP
The percentage of deposits that a bank needs to keep on hand
In terms of AS and AD, and increase in prices caused by a decrease in AS, which is caused by and increase in the cost of doing business
tax where when your income goes up, the percentage of your income paid in taxes goes up
Money stored as numbers on a computer
Coins and Currency outside of financial institutions, demand deposits (checking accounts) excluding gov't and foreign deposits, and other checkable deposits (deposits you can writealso known as M1
Internal Mechanism that takes external shocks and translates them into the waves of the business cycle having to do with durable goods
RNNP definitionno commas RNNP = NNP x (100/CPI)
Classical economists 2 automatic mechanismsWrite out all the way, just a comma in between
low point in business cycle
spending, usually by a business, on capital goods, changes in inventory, and construction
Measure of how many times the money supply must turn over to buy GDP (ON AVERAGE)
a finished product used to produce other goods or services
the utility brought about by the next additional equal unit of a good or service
MPC definition
Mutual funds which act like savings accounts and try to keep cost of share at $1
goods which are difficult for private corporations to provide and difficult to charge people for their use
Banks can call in loan whenever with proper notification
taxes are assessed in brackets. A certain amount of income is assessed a certain tax
Say's Law
increase in prices due to an increase in demand
relates GDP to level of prices
Upward-sloping to the right. Some sectors of the economy are in the Keynesian Phase, some sectors of the economy are in the Classical Phase. Those sectors of the economy in the Key
annual 1-year difference when expenditures exceed revenues
how much an economy can produce utilizing all of its resources effectivelytakes some unemployment into account
MPCjust the name

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