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BeginBegin
By: Vinh Nguyen
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Shifters ofShifters ofDemandDemand
The Law ofThe Law ofDemandDemand
The Law ofThe Law ofSupplySupply
UnemploymentUnemployment GDPGDPShiftersShiftersOf SupplyOf Supply
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- $100- $100
The supply graph will shift in this direction if the cost to
produce goes up
What is left
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- $200Technological improvements will
shift the supply graph in this direction
What is right
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- $300
If expectations improve in the supply, the supply curve will shift
What is left
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- $400
If income goes down, the supply curve will shift
What is left
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- $500
An increase in the capital stock will cause the long-run aggregate
supply curve to shift
What is right
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- $100
If people start favoring a different product, the demand
curve will shift
What is left
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- $200
If the price of related goods goes up, the supply graph will shift in
this direction
What is left
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- $300
If expectations go down, the demand curve will shift in this
direction
What is left
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- $400
If income goes down, the demand curve will shift in this direction
What is left
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- $500If the input cost of producing an item increasing, the supply curve
will shift in this direction
What is left
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- $100
This states that as a person consumes additional units of a good, the utility gained from each additional unit decreases
What is the law of diminishing utility
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- $200
This states that as the price of a good increases, the quantity
demanded of the good decreases
What is the Law of Demand
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- $300
This is a good for which demand falls as income rises
What is an inferior good
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- $400This occurs when consumers
react to an increase in a good’s price by consuming less of that
good and more of substitute goods
What is the substitution effect
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- $500This happens when a lower price
increases the real purchasing power of the consumer, allowing
them to purchase more
What is the income effect
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- $100This is an unusual economic
situation in which an economy is suffering both from inflation and
stagnation
What is stagflation
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- $200This is the relationship between the quantity of real GDP and the price level when the money wage
rate remains constant
What is short-run aggregate supply
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- $300A change in the quantity supplied
of a good that is the result of a change in that good’s price
causes this
What is movement along the supply curve
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- $400
This states that as the price of a good or service increases, the quantity of goods or services offered by suppliers increases
What is the law of supply
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- $500
This is anything used to produce a good or service
What is input
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- $100This type of unemployment is when individuals are qualified workers with transferable skills
are out of work
What is frictional unemployment
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- $200This type of unemployment
results from economic downturns
What is cyclical unemployment
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- $300
This type of unemployment means we have the natural rate of
unemployment or no cyclical unemployment
What is full unemployment
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- $400This type of unemployment is
when changes in the structure of the labor force make some skills
obsolete
What is structural unemployment
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- $500
Calculating unemployment rate can be done using this formula
What is (unemployed/labor force) x 100
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- $100This is the dollar value of all
final goods and services produced within a country’s
border in one year
What is GDP
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- $200These are the four components of
GDP
What are consumer spending, investments, government spending and net exports
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- $300This type of GDP adjusts for
inflation
What is Real GDP
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- $400In times of a recession, this will
occur to the Real GDP
What is decrease
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- $500This formula is used to calculate
real GDP
What is (Nominal GDP/Price Index) x 100