<p>Vocabulary – Macroeconomics, Day. At least half the questions for each quiz will 3.1 be vocabulary questions. Demand curve * Not in textbook Demand schedule Demand 1.1 Equilibrium price Economics*(D1 S7) Equilibrium quantity Scarcity Equilibrium Law of Demand 1.2 Law of Supply Macroeconomics Price Microeconomics Quantity demanded Quantity supplied 1.3 Shortage Model* Supply curve Supply schedule 1.4 Supply Command economy Surplus Market Market economy 3.2 Private Enterprise Ceteris paribus Traditional economy Quantity demanded Underground economy Complements Inferior goods 2.1 Normal good Budget constraint Shift in demand Opportunity cost Substitute ------Quiz #2 Line 2.2 Quantity supplied Law of increasing opportunity Factors of production cost*(N1AB S62) Inputs Production possibilities frontier Shift in supply Comparative advantage ------Quiz #1 Line 3.4 Allocative efficiency Price ceiling Productive efficiency Price control Price Floor 4.3 8.1 Incentive Problem*(D5 S175) Discouraged workers Information Problem*(D5 S175) Labor force Invisible hand*(D5 S175) Unemployment rate</p><p>6.1 8.3 Circular flow diagram*(D6 S19) Cyclical unemployment Double counting Implicit contract Final good or service Adverse selection of wage cuts Gross domestic product (GDP) Short-run in macroeconomics Intermediate good Service 8.4 Trade balance Frictional unemployment Trade deficit Structural unemployment Trade surplus Long-run in macroeconomics Consumption expenditures*(D6 S12) Natural rate of unemployment Investment expenditures*(D6 S12) Natural real GDP Government expenditures*(D6 S12) 9.0 6.2 Inflation Nominal value Real GDP*(N3AB S28) 9.1 Real value Basket of goods and services ------Quiz #3 Line Index number Base year 6.3 Business cycle 9.2 Depression Consumer price index Peak Substitution bias Trough Quality/new goods bias Core inflation index 6.4 GDP deflator Exchange rate GDP per capita 9.3 Deflation 6.5 Hyperinflation*(D11 S33) Standard of living ------Unit #1 Line 9.5 Recognition lag Cost-of-living adjustments (COLA) Adjustable-rate mortage (ARM) 17.3 Indexing Budget deficit*(D16 S92) ------Quiz #4 Line National debt ------Quiz #6 Line 11.2 Aggregate demand/aggregate supply model 7.1 Aggregate supply Industrial revolution Aggregate supply curve Rule of law Natural real GDP (potential GDP Marginal tax rate*(D17 S117 or full employment GDP) Supply-side economics*(D17 S117) Short-run aggregate supply curve Long-run aggregate supply curve 7.2 Physical capital 11.3 ------Unit #2 Line Stagflation 13.1 12.1 Neoclassical perspective Recessionary gap Expected inflation Inflationary gap Natural rate of unemployment*(D21 S8) Natural real GDP*(D22 S8) 12.2 Rational expectations Sticky wages and prices Adaptive expectations Marginal propensity to ------Quiz #7 Line consume*(D14 S17) Expenditure multiplier 14.1 ------Quiz #5 Line Barter Commodity money 12.3 Double coincidence of wants Phillips curve Fiat money Expansionary fiscal policy Money Contractionary fiscal policy 14.2 17.6 Demand deposits Crowding out M1 money supply*(D23 S85) Implementation lag M2 money supply*(D23 S86) Legislative lag Savings deposits 14.3 20.1 Bank*(N12AB S91) Gains from trade Fractional reserve banking*(N12AB S95)</p><p>14.4 16.1 Money multiplier formula*(N12AB S103) Appreciating Depreciating 15.1 Foreign exchange market Central bank Federal Reserve System*(N12AB S108) 16.2 Purchasing power parity 15.2 ------Unit #3 Line Bank run Deposit insurance Lender of last resort</p><p>15.3 Open market operations Reserve requirement Discount rate</p><p>15.4 Contractionary monetary policy Expansionary monetary policy Federal funds rate Quantitative easing ------Quiz #8 Line</p><p>15.5 Equation of exchange*(N14BB S48) Excess reserves Monetarists*(N13AB S70) Monetary Base*(N13AB S33) Velocity ------Quiz #9 Line</p>