II. III. Old stuff needed to review a. The measurement economists use to measure the national output of an economy is called where uses this year's prices while compares the output using a base year. b. The 3 broad macro goals include i. ii. iii. c. Vocab i. -spending more than you are taking in (can be a governmental issue also, if the government more than they collect in revenue, they are running a yearly deficit ii. - what you sacrifice when you make a choice - the next best alternative you could have received Aggregate demand and aggregate supply a. Aggregate demand is the sum of all demand for new goods and produced within year by , , -, and b. The general slope of an AD curve is while an curve is upward or slope c. When you engage in fiscal policy, you are either changing or spending i. fiscal policy means the government will decrease and government spending ii. fiscal policy means the government will taxes and decrease What is money? a. Money serves 3 important purposes, including as a of , of value, and a of b. Characteristics of good money include , , and c. The US money is known as money (which is very difficult to pronounce, but thankfully this is not a verbal test) d. The three main types of money are , , with being the most liquid (which means closest to being cash) i. - includes , , ii. includes iii. - the largest which includes The Federal Reserve a. The basis for our national banking idea comes from the reserve system, which means that banks only need to hold part of the cash we deposit, therefore allowing the bank to out the rest, which allows people to from the bank and expand or buy (which helps our grow) L 'T'Ln EnAnnnl Darin-A11" :r' nlnn lrnnt.'r nn +1-'n urnI :r' r. ruri nnnnn