economics

    Master this deck with 64 terms through effective study methods.

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    What defines the Law of Demand?

    Higher prices lead to lower demand.

    What defines the Law of Supply?

    Higher prices lead to higher supply.

    What happens to demand when prices decrease?

    Demand increases.

    What is equilibrium in economics?

    Where demand equals supply.

    What is Price Elasticity of Demand?

    Measures how demand changes with price changes.

    How do elastic and inelastic demand differ?

    Elastic demand changes significantly with price; inelastic does not.

    What is the Multiplier Effect?

    Increased government spending leads to greater overall economic impact.

    What is GDP?

    Total market value of all final goods and services produced in a country.

    What are the components of GDP?

    Consumption, Investment, Government Expenditure, and Net Exports.

    What distinguishes Nominal GDP from Real GDP?

    Nominal GDP uses current prices; Real GDP uses constant prices.

    What is the GDP deflator?

    Measures inflation by comparing nominal and real GDP.

    What is Potential GDP?

    GDP at full employment level.

    What does the GDP gap indicate?

    Difference between actual GDP and potential GDP.

    What is Purchasing Power Parity (PPP) GDP?

    Adjusts GDP based on different price levels.

    What is the first step in analyzing GDP data?

    Assessing positive data impacts on asset values.

    What does Risk-On mean in market analysis?

    Increased demand for risky assets when economic data is positive.

    What does Risk-Off indicate?

    Increased demand for safe assets when economic data is negative.

    What defines the Law of Demand?

    Higher prices lead to lower demand.

    What defines the Law of Supply?

    Higher prices lead to higher supply.

    What happens to demand when prices decrease?

    Demand increases.

    What is equilibrium in economics?

    Point where demand equals supply.

    What is Price Elasticity of Demand?

    Measure of how demand changes with price.

    How do elastic and inelastic demand differ?

    Elastic: demand changes significantly; inelastic: little change.

    What is the Multiplier Effect?

    Increase in economic activity from government spending.

    What components make up GDP?

    Consumption, investment, government spending, and net exports.

    What distinguishes Nominal GDP from Real GDP?

    Nominal uses current prices; Real uses constant prices.

    What is the GDP deflator?

    Measure of price level changes in GDP.

    What is Potential GDP?

    GDP at full employment level.

    What is Purchasing Power Parity (PPP)?

    Comparison of different price levels across countries.

    What is the effect of positive GDP data on the dollar?

    Increases demand for US assets and the dollar.

    What happens during a Risk-On scenario?

    Demand for risky currencies increases.

    What happens during a Risk-Off scenario?

    Demand for safe currencies increases.

    What defines the Law of Demand?

    Higher prices lead to lower demand.

    What defines the Law of Supply?

    Higher prices lead to higher supply.

    What happens to demand when prices decrease?

    Demand increases as prices fall.

    What is equilibrium in economics?

    Point where demand equals supply.

    What is Price Elasticity of Demand?

    Measure of how demand changes with price.

    How do elastic and inelastic demand differ?

    Elastic demand changes significantly with price; inelastic does not.

    What is the Multiplier Effect?

    Increase in spending leads to greater overall economic impact.

    What is GDP?

    Total market value of all final goods and services produced in a country.

    What are the components of GDP?

    Consumption, Investment, Government Expenditure, and Net Exports.

    What distinguishes Nominal GDP from Real GDP?

    Nominal GDP uses current prices; Real GDP uses constant prices.

    What is the GDP deflator?

    Measure of price level changes in the economy.

    What does Potential GDP represent?

    GDP at full employment level.

    What is Purchasing Power Parity (PPP)?

    Comparison of different price levels across countries.

    What is the effect of positive GDP data on the dollar?

    Increases demand for US assets and the dollar.

    What is the Risk-On scenario in market analysis?

    Better than expected GDP data leads to higher demand for risky currencies.

    What is the Risk-Off scenario in market analysis?

    Worse than expected GDP data increases demand for safe currencies.

    What defines the Law of Demand?

    Higher prices lead to lower demand.

    What defines the Law of Supply?

    Higher prices lead to higher supply.

    What happens to demand when prices decrease?

    Demand increases.

    What is equilibrium in economics?

    Where demand equals supply.

    What is Price Elasticity of Demand?

    Measures how demand changes with price.

    How do elastic and inelastic demand differ?

    Elastic: demand changes significantly; inelastic: little change.

    What is the Multiplier Effect?

    Increased government spending leads to greater overall economic impact.

    What is GDP?

    Total market value of all final goods and services produced.

    What are the components of GDP?

    Consumption, Investment, Government Expenditure, and Net Exports.

    What distinguishes Nominal GDP from Real GDP?

    Nominal uses current prices; Real uses constant prices.

    What is the GDP deflator?

    Measures inflation by comparing nominal and real GDP.

    What is Potential GDP?

    GDP at full employment level.

    What is Purchasing Power Parity (PPP)?

    Different price levels affect purchasing power.

    What is the effect of positive GDP data on the dollar?

    Increases demand for US assets and the dollar.

    What happens during a Risk-On scenario?

    Demand for risky currencies increases.

    What happens during a Risk-Off scenario?

    Demand for safe currencies increases.