Economic Theories and Concepts

1. A ______ is a long-term decline in economic activity and productivity.

2. Gross Domestic Product (GDP) measures the ______ value of all final goods and services produced in a country.

3. The ______ rate is the percentage of the labor force that is unemployed but actively seeking work.

4. Monetary policy is primarily concerned with managing the ______ supply.

5. Fiscal policy involves changes in government ______ and taxation to influence the economy.

6. The ______ theory suggests that markets are always clear and efficient.

7. The ______ of supply and demand determines the price of goods in a market economy.

8. ______ is the study of how people manage scarce resources to meet their needs.

9. A ______ is a situation where aggregate demand is less than aggregate supply.

10. The ______ curve represents the relationship between inflation and unemployment.

11. Inflation refers to the ______ of prices over time.

12. The ______ of a company is the total value of its outstanding shares of stock.

13. Supply-side economics focuses on increasing ______ by lowering taxes and reducing regulation.

14. A ______ market is characterized by rising prices and investor optimism.

15. The ______ of a currency refers to its value compared to other currencies.

16. A ______ market occurs when prices are falling and investor confidence is low.

17. The ______ effect describes the impact of interest rate changes on investment.

18. Keynesian economics advocates for ______ intervention to manage economic cycles.