________ emphasizes that shocks to technology can be a major cause of economic fluctuations.
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Labor
________ consists of the efforts, both physical and mental, of all the workers in the economy used to produce goods and services.
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full employment output
In an open economy, ________ is divided among four uses: consumption, investment, government purchases, and net exports (exports- imports): Y= C + I + G + NX.
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international trade
An economy with ________ is called an open economy.
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stock of capital
The ________ is all the machines, equipment, and buildings in the entire economy.
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significant technological improvement
A(n) ________ will enable the economy to increase the level of both actual and potential output.
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Full employment
________ means an economy has frictional and structural unemployment but no cyclical unemployment.
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Principle of Opportunity Cost
________: The opportunity cost of something is what you sacrifice to get it.
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positive technological shock
A(n) ________ would increase labor demand and result in both higher wages and higher employment.
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level of employment
Together, the demand and supply curves determine the ________ in the economy and the level of real wages.
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Capital
________ is one of the key factors of production.
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total level of output
It explains how the ________ or GDP in the economy is generated from the factors of production.
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full employment model
The ________ is used to analyze the long- term issues, such as the role taxes play in determining the level of GDP and how immigration affects wages and GDP.
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real wage
The amount of labor firms in the economy will hire depends on the __________: the wage rate paid to employees adjusted for changes in the price level.
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Marginal Principle
_______________: Increase the level of an activity as long as its marginal benefit exceeds its marginal cost. Choose the level at which the marginal benefit equals the marginal cost.
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Output
__________ = consumption + investment + government purchases
Studied by 3 people
