Home C1 Vocabulary Economic Theories and Concepts 1 year ago 4 months ago Economic Theories and Concepts by minor7th Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 0% Economic Theories and Concepts 1. Inflation refers to the ______ of prices over time. decrease eradication increase deduction 2. Fiscal policy involves changes in government ______ and taxation to influence the economy. decision investment spending output 3. A ______ is a situation where aggregate demand is less than aggregate supply. growth surplus imbalance deficit 4. The ______ effect describes the impact of interest rate changes on investment. multiplier interest gruesome resourceful 5. A ______ market is characterized by rising prices and investor optimism. volatile stagnant bull bear 6. ______ is the study of how people manage scarce resources to meet their needs. Resource management Economic theory Market study Economics 7. The ______ curve represents the relationship between inflation and unemployment. supply Phillips inflation GDP 8. Keynesian economics advocates for ______ intervention to manage economic cycles. monetary supply fiscal government 9. Monetary policy is primarily concerned with managing the ______ supply. currency credit money liquidity 10. The ______ theory suggests that markets are always clear and efficient. total market liquid market efficient markets market equilibrium 11. Supply-side economics focuses on increasing ______ by lowering taxes and reducing regulation. growth demand production liquidity 12. A ______ is a long-term decline in economic activity and productivity. downturn recession depression decline 13. Gross Domestic Product (GDP) measures the ______ value of all final goods and services produced in a country. surplus total market essential 14. A ______ market occurs when prices are falling and investor confidence is low. volatile bull stagnant bear 15. The ______ of supply and demand determines the price of goods in a market economy. relationship intersection interaction balance 16. The ______ of a currency refers to its value compared to other currencies. value exchange rate interest rate 17. The ______ rate is the percentage of the labor force that is unemployed but actively seeking work. unemployment labor jobless job 18. The ______ of a company is the total value of its outstanding shares of stock. equity valuation market cap stock Your score is The average score is 0% 0% Restart quiz