Ch.1 Economic Problem Flashcards
1
Q
7 Goals of
Macroeconomy
A
1) Standard of Living
2) Economic Growth
3) Full Employment
4) Stable Prices
5) Viable Balance of
Int’l Trade
6) Equitable Distribution of Income
7) Manageable Gov Debt & Deficit
2
Q
3 Macroeconomic Tools
A
1) Fiscal Policy
taxing/ gov spending
2) Monetary Policy
int rate/ money supply
3) Direct Controls
tariff/ min wage/ regulation
3
Q
An item’s prod level ↑
⇒ per unit cost ↑
is the Law of ___ ___
A
The Law of
Increasing Costs