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Flashcards in Econ Corrections Deck (13)
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1
Q

Why does Keynesian economics advocate deficit spending?

A

Believes stability rather than a balanced budget. Also the spending multiplier

2
Q

How does the government spend during deficit spending?

A

The issue bonds that are bought up by people, companies and nations

3
Q

What is the law of demand

A

when the price of a good falls consumers demand more of it

4
Q

What is a demand schedule?

A

Price in the left column, quantity in the right

5
Q

what is the law of supply?

A

that producers are willing to sell more of a good or a service at a higher price

6
Q

what is supply schedule?

A

Price per pound in left column, quantity of supplied in the right

7
Q

What is the supply curve?

A

Graphs of a supply schedule?

8
Q

What is marginal product

A

the change in total production that comes from hiring one worker

9
Q

what is marginal revenue

A

added revenue per unit of output

10
Q

what is total revenue

A

income a business receives from selling a product

11
Q

profit-maximizing output

A

the greatest level of production that produces the greatest amount of profit

12
Q

what is an excise tax

A

a tax on a certain good or product

13
Q

Elasticity of supply

A

When a change of supply creates a relatively larger change in demand