ECON 1113 Exam 2 Questions With Correct
Answers
government failure - CORRECT ANSWER✔✔-recurring increases and
| | | | | | |
decreases in the level of economic activity over periods of years;
| | | | | | | | | | |
consists of peak, recession, trough, and expansion phases.
| | | | | | |
recession - CORRECT ANSWER✔✔-real GDP declines- along with output
| | | | | | | | |
and living standards. This is accompanied by lower real income and
| | | | | | | | | | |
higher unemployment.
|
real GDP (Gross Domestic Product) - CORRECT ANSWER✔✔-measures
| | | | | | | |
the values of final goods and services produced within the borders of a
| | | | | | | | | | | | |
country during a specific period of time (typically a year). This is taking
| | | | | | | | | | | | |
inflation into consideration.
| |
nominal gdp - CORRECT ANSWER✔✔-measured in terms of the price
| | | | | | | | | |
level at the time of measurement (NOT taking inflation into
| | | | | | | | | |
consideration)
unemployment - CORRECT ANSWER✔✔-the state a person is in if he or | | | | | | | | | | | |
she cannot get a job despite being willing to work and actively seeking
| | | | | | | | | | | | |
work
,inflation - CORRECT ANSWER✔✔-an increase in the overall prices
| | | | | | | |
modern economic growth - CORRECT ANSWER✔✔-the historically
| | | | | | |
recent phenomenon in which nations for the first time have
| | | | | | | | | |
experienced sustained increases in real GDP per capita
| | | | | | |
saving - CORRECT ANSWER✔✔-occurs when current consumption is less
| | | | | | | |
|than current output (or when current spending is less than current
| | | | | | | | | | |
income)
investment - CORRECT ANSWER✔✔-happens when resources are
| | | | | | |
devoted to increasing future output
| | | |
financial investment - CORRECT ANSWER✔✔-captures what ordinary
| | | | | | |
people mean when they say investment (aka stocks, bonds, and real
| | | | | | | | | | |
estate in hope of reaping a financial gain)
| | | | | | |
economic investment - CORRECT ANSWER✔✔-relates to the creation
| | | | | | | |
and expansion of business enterprises.
| | | |
includes spending on the production and accumulation of newly created
| | | | | | | | |
|capital goods such as machinery, tools, factories, and warehouses.
| | | | | | | |
, expectations - CORRECT ANSWER✔✔-the anticipations of consumers, | | | | | | |
firms, and others about future economic conditions
| | | | | |
shocks - CORRECT ANSWER✔✔-situations in which firms were expecting
| | | | | | | |
one thing to happen but then something else happened ("SHOCKing"
| | | | | | | | | | |
haha)
demand shocks - CORRECT ANSWER✔✔-unexpected changes in the
| | | | | | | |
demand for goods and services | | | |
higher demand shock: a situation in which demand turns out to be
| | | | | | | | | | | |
higher than expected | |
negative demand shock: refers to a situation in which demand turns out
| | | | | | | | | | | |
to be lower than expected
| | | |
supply shocks - CORRECT ANSWER✔✔-unexpected changes in the
| | | | | | | |
supply of goods and services| | | |
sticky prices or inflexible prices - CORRECT ANSWER✔✔-product prices
| | | | | | | | |
that remain in place (at least for a while) even though supply or demand
| | | | | | | | | | | | |
has changed
| |
flexible prices - CORRECT ANSWER✔✔-product prices that freely move
| | | | | | | | |
upward or downward when product demand or supply changes (corn,
| | | | | | | | | |
oil, and natural gas)
| | |
Answers
government failure - CORRECT ANSWER✔✔-recurring increases and
| | | | | | |
decreases in the level of economic activity over periods of years;
| | | | | | | | | | |
consists of peak, recession, trough, and expansion phases.
| | | | | | |
recession - CORRECT ANSWER✔✔-real GDP declines- along with output
| | | | | | | | |
and living standards. This is accompanied by lower real income and
| | | | | | | | | | |
higher unemployment.
|
real GDP (Gross Domestic Product) - CORRECT ANSWER✔✔-measures
| | | | | | | |
the values of final goods and services produced within the borders of a
| | | | | | | | | | | | |
country during a specific period of time (typically a year). This is taking
| | | | | | | | | | | | |
inflation into consideration.
| |
nominal gdp - CORRECT ANSWER✔✔-measured in terms of the price
| | | | | | | | | |
level at the time of measurement (NOT taking inflation into
| | | | | | | | | |
consideration)
unemployment - CORRECT ANSWER✔✔-the state a person is in if he or | | | | | | | | | | | |
she cannot get a job despite being willing to work and actively seeking
| | | | | | | | | | | | |
work
,inflation - CORRECT ANSWER✔✔-an increase in the overall prices
| | | | | | | |
modern economic growth - CORRECT ANSWER✔✔-the historically
| | | | | | |
recent phenomenon in which nations for the first time have
| | | | | | | | | |
experienced sustained increases in real GDP per capita
| | | | | | |
saving - CORRECT ANSWER✔✔-occurs when current consumption is less
| | | | | | | |
|than current output (or when current spending is less than current
| | | | | | | | | | |
income)
investment - CORRECT ANSWER✔✔-happens when resources are
| | | | | | |
devoted to increasing future output
| | | |
financial investment - CORRECT ANSWER✔✔-captures what ordinary
| | | | | | |
people mean when they say investment (aka stocks, bonds, and real
| | | | | | | | | | |
estate in hope of reaping a financial gain)
| | | | | | |
economic investment - CORRECT ANSWER✔✔-relates to the creation
| | | | | | | |
and expansion of business enterprises.
| | | |
includes spending on the production and accumulation of newly created
| | | | | | | | |
|capital goods such as machinery, tools, factories, and warehouses.
| | | | | | | |
, expectations - CORRECT ANSWER✔✔-the anticipations of consumers, | | | | | | |
firms, and others about future economic conditions
| | | | | |
shocks - CORRECT ANSWER✔✔-situations in which firms were expecting
| | | | | | | |
one thing to happen but then something else happened ("SHOCKing"
| | | | | | | | | | |
haha)
demand shocks - CORRECT ANSWER✔✔-unexpected changes in the
| | | | | | | |
demand for goods and services | | | |
higher demand shock: a situation in which demand turns out to be
| | | | | | | | | | | |
higher than expected | |
negative demand shock: refers to a situation in which demand turns out
| | | | | | | | | | | |
to be lower than expected
| | | |
supply shocks - CORRECT ANSWER✔✔-unexpected changes in the
| | | | | | | |
supply of goods and services| | | |
sticky prices or inflexible prices - CORRECT ANSWER✔✔-product prices
| | | | | | | | |
that remain in place (at least for a while) even though supply or demand
| | | | | | | | | | | | |
has changed
| |
flexible prices - CORRECT ANSWER✔✔-product prices that freely move
| | | | | | | | |
upward or downward when product demand or supply changes (corn,
| | | | | | | | | |
oil, and natural gas)
| | |
