Red/Orange

Question 1

Types of Resources

Answer 1

Land, Labor, Capital, Entrepreneurship

Question 2

Effects of Unexpected Inflation: Helped

Answer 2

Benefits borrowers

Question 3

Effects of Unexpected Inflation: Hurt

Answer 3

Ppl w/ Fixed nominal incomes, those who save in fixed-value accounts, and lenders

Question 4

Frictional Unemployment

Answer 4

workers searching for jobs, in between jobs, or waiting to take jobs

Question 5

Structural Unemployment

Answer 5

some skills become not needed as much or even obsolete

Question 6

Cyclical Unemployment

Answer 6

workers laid off due to recession

Question 7

Full Employment/Natural Rate of Unemployment (NRU)

Answer 7

when there is no cyclical unemployment

Question 8

Budget Surplus

Answer 8

G < T (tax revenue is greater than government spending)

Question 9

Budget Deficit

Answer 9

G > T (government spending is greater than tax revenues)

Question 10

M1

Answer 10

currency (coins & paper money) and checkable deposits

Question 11

M2

Answer 11

M1 plus near-monies (highly liquid financial assets that don’t directly function as a medium of exchange but can be quickly converted into M1 without risk of financial loss

Question 12

M3

Answer 12

M2 plus large time deposits

Question 13

Stagflation

Answer 13

Increasing inflation and rising unemployment (often caused by a negative supply shock)