ECN 1500 FINAL QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED A
As with goods, when the supply of money increases faster than does the
demand, Correct Answers the value of the money falls
Bank of North America Correct Answers limited-liability corporation,
and could be viewed as the nation's first central bank
Commodity money Correct Answers money which has value as a
medium of exchange equal to its value as a commodity- animal skins,
whiskey, wheat, gold
Fiat money Correct Answers money which has value as a medium of
exchange greater than its value as a commodity- paper money
Gresham's Law Correct Answers "bad money drives out good money."
recession Correct Answers a period of declining real incomes and rising
unemployment
depression Correct Answers a severe recession
model of aggregate demand and aggregate supply Correct Answers the
model that most economists use to explain short-run fluctuations in
economic activity around its long-run trend
, aggregate-demand curve Correct Answers a curve that shows the
quantity of goods and services that households, firms, the government,
and customers abroad want to buy at each price level
aggregate-supply curve Correct Answers a curve that shows the quantity
of goods and services that firms choose to produce and sell at each price
level
natural level of output Correct Answers the production of goods and
services that an economy achieves in the long run when unemployment
is at its normal rate
stagflation Correct Answers A period of falling output and rising prices
theory of liquidity preference Correct Answers Keynes's theory that the
interest rate adjusts to bring money supply and money demand into
balance
fiscal policy Correct Answers the setting of the level of government
spending and taxation by government policymakers
multiplier effect Correct Answers the additional shifts in aggregate
demand that result when expansionary fiscal policy increases income
and thereby increases consumer spending
100% CORRECT | ALREADY GRADED A
As with goods, when the supply of money increases faster than does the
demand, Correct Answers the value of the money falls
Bank of North America Correct Answers limited-liability corporation,
and could be viewed as the nation's first central bank
Commodity money Correct Answers money which has value as a
medium of exchange equal to its value as a commodity- animal skins,
whiskey, wheat, gold
Fiat money Correct Answers money which has value as a medium of
exchange greater than its value as a commodity- paper money
Gresham's Law Correct Answers "bad money drives out good money."
recession Correct Answers a period of declining real incomes and rising
unemployment
depression Correct Answers a severe recession
model of aggregate demand and aggregate supply Correct Answers the
model that most economists use to explain short-run fluctuations in
economic activity around its long-run trend
, aggregate-demand curve Correct Answers a curve that shows the
quantity of goods and services that households, firms, the government,
and customers abroad want to buy at each price level
aggregate-supply curve Correct Answers a curve that shows the quantity
of goods and services that firms choose to produce and sell at each price
level
natural level of output Correct Answers the production of goods and
services that an economy achieves in the long run when unemployment
is at its normal rate
stagflation Correct Answers A period of falling output and rising prices
theory of liquidity preference Correct Answers Keynes's theory that the
interest rate adjusts to bring money supply and money demand into
balance
fiscal policy Correct Answers the setting of the level of government
spending and taxation by government policymakers
multiplier effect Correct Answers the additional shifts in aggregate
demand that result when expansionary fiscal policy increases income
and thereby increases consumer spending
