Chapter 22 Flashcards
1
Q
What is microeconomics?
A
Individual markets within an economy
2
Q
What is macroeconomics?
A
Study of an economy as a whole
3
Q
What are the requirements for a good economy?
A
High output of goods
Efficient allocation of resources
Stable prices
Exports = Imports
4
Q
What is GDP?
A
Gross Domestic Product (national measure of output)
5
Q
What is economic growth?
A
Increase in the output of an economy
6
Q
Why is unemployment a problem?
A
high unemployment –> low economic growth rate
7
Q
What is inflation?
A
Increase of the average price of an economy
8
Q
What is the problem with inflation?
A
Confusion about the value of money
You can buy less with the same amount of money
