Home > C1 Vocabulary 0% Economic Theories and Concepts 1. Gross Domestic Product (GDP) measures the ______ value of all final goods and services produced in a country. market surplus essential total 2. Inflation refers to the ______ of prices over time. decrease eradication deduction increase 3. Supply-side economics focuses on increasing ______ by lowering taxes and reducing regulation. production liquidity demand growth 4. Keynesian economics advocates for ______ intervention to manage economic cycles. fiscal government supply monetary 5. The ______ of supply and demand determines the price of goods in a market economy. intersection interaction balance relationship 6. The ______ theory suggests that markets are always clear and efficient. liquid market market equilibrium total market efficient markets 7. A ______ is a long-term decline in economic activity and productivity. downturn depression decline recession 8. The ______ of a company is the total value of its outstanding shares of stock. equity market cap stock valuation 9. ______ is the study of how people manage scarce resources to meet their needs. Market study Economic theory Economics Resource management 10. The ______ rate is the percentage of the labor force that is unemployed but actively seeking work. job unemployment jobless labor 11. Fiscal policy involves changes in government ______ and taxation to influence the economy. output spending investment decision 12. The ______ curve represents the relationship between inflation and unemployment. supply Phillips GDP inflation 13. A ______ market occurs when prices are falling and investor confidence is low. volatile stagnant bull bear 14. The ______ effect describes the impact of interest rate changes on investment. gruesome multiplier resourceful interest 15. A ______ is a situation where aggregate demand is less than aggregate supply. imbalance deficit growth surplus 16. The ______ of a currency refers to its value compared to other currencies. rate value interest exchange rate 17. Monetary policy is primarily concerned with managing the ______ supply. money currency credit liquidity 18. A ______ market is characterized by rising prices and investor optimism. bull stagnant volatile bear Your score is The average score is 0% 0% Restart quiz