Econ unit 5

Question 1

Philips curve

Answer 1

UE X axis Inflation Y axis

Question 2

economic growth definition

Answer 2

sustained increase in per capita real GDP - per capita rGDP = rGDP/population

Question 3

Quantity theory of money

Answer 3

M(money supply) x V (velocity of money) = P (price level) x Y (quantity of output or GDP)

MV=PY

Question 4

AS/AD Graph

Answer 4

Price level (Y axis) and GDP (X axis)

Question 5

elements of economic growth

Answer 5

Quantity of resources (land, labor capital), productivity, physical capital

Question 6

Net investment

Answer 6

Gross investment - depreciation

Question 7

Loanable funds graph

Answer 7

real interest rate (y axis) amount of funds (x axis)

Question 8

PPC graph

Answer 8

consumer (x axis) capital (y axis)