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

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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

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3
Q

An item’s prod level ↑
⇒ per unit cost ↑
is the Law of ___ ___

A

The Law of
Increasing Costs

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