Download AT Economics Key Terms

AT Economics
Pai
January 2017
Key Topics for Midterm 2017
Unit I

Resources

Scarcity

Opportunity Cost

Trade-off

Marginal decisions

Marginal analysis

Gains from trade

Specialization

Production possibilities curve

Comparative and absolute advantage

Circular-flow diagram
Unit II

Supply and Demand Curves

Law of Supply and Law of demand

Differences between shifts of the demand curve and movements along the demand curve

Differences between shifts of the supply curve and movements along the supply curve

Factors that shift supply curve

Factors that shift demand curve

Equilibrium in the supply and demand graph

Surplus and Shortage

Price ceilings and price floors

Minimum Wage
Unit III

Business Cycle

GDP
o Nominal vs Real GDP
o GDP per capita

Unemployment
o Types of unemployment
o Calculating the unemployment rate

Inflation
o CPI
o Market basket

Short-Run Phillips Curve
Unit IV

Aggregate Supply and Aggregate Demand

Short-run aggregate supply vs. long-run aggregate supply
o Sticky wages

Potential output

Aggregate demand curve
o Shifters of aggregate demand

Aggregate supply curve
o Shifters of short-run aggregate supply

Demand and Supply Shocks

Spending Multiplier

MPC and MPS

Recessionary vs. Inflationary Gaps

Consumption function
Unit V

Fiscal Policy

Government spending

Taxation

Expansionary vs. Contractionary Fiscal Policy

Government spending multiplier

Tax multiplier

Balanced budget

Budget deficit

Budget surplus
Unit VI

Monetary Policy

Roles of Money

Types of Money

Monetary Aggregates

Role of Banks

Reserve Ratio

Money Multiplier

Federal Reserve

Tools of the Federal Reserve

Money Market Graph

Expansionary and Contractionary Monetary Policy

Keynesian vs. Monetarists