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By: Vinh Nguyen

$100 $100 $100 $100 $100$100

$200 $200 $200 $200 $200$200

$300 $300 $300 $300 $300$300

$400 $400 $400 $400 $400$400

$500 $500 $500 $500 $500$500$500$500

Shifters ofShifters ofDemandDemand

The Law ofThe Law ofDemandDemand

The Law ofThe Law ofSupplySupply

UnemploymentUnemployment GDPGDPShiftersShiftersOf SupplyOf Supply

- $100- $100

The supply graph will shift in this direction if the cost to

produce goes up

What is left

- $200Technological improvements will

shift the supply graph in this direction

What is right

- $300

If expectations improve in the supply, the supply curve will shift

What is left

- $400

If income goes down, the supply curve will shift

What is left

- $500

An increase in the capital stock will cause the long-run aggregate

supply curve to shift

What is right

- $100

If people start favoring a different product, the demand

curve will shift

What is left

- $200

If the price of related goods goes up, the supply graph will shift in

this direction

What is left

- $300

If expectations go down, the demand curve will shift in this

direction

What is left

- $400

If income goes down, the demand curve will shift in this direction

What is left

- $500If the input cost of producing an item increasing, the supply curve

will shift in this direction

What is left

- $100

This states that as a person consumes additional units of a good, the utility gained from each additional unit decreases

What is the law of diminishing utility

- $200

This states that as the price of a good increases, the quantity

demanded of the good decreases

What is the Law of Demand

- $300

This is a good for which demand falls as income rises

What is an inferior good

- $400This occurs when consumers

react to an increase in a good’s price by consuming less of that

good and more of substitute goods

What is the substitution effect

- $500This happens when a lower price

increases the real purchasing power of the consumer, allowing

them to purchase more

What is the income effect

- $100This is an unusual economic

situation in which an economy is suffering both from inflation and

stagnation

What is stagflation

- $200This is the relationship between the quantity of real GDP and the price level when the money wage

rate remains constant

What is short-run aggregate supply

- $300A change in the quantity supplied

of a good that is the result of a change in that good’s price

causes this

What is movement along the supply curve

- $400

This states that as the price of a good or service increases, the quantity of goods or services offered by suppliers increases

What is the law of supply

- $500

This is anything used to produce a good or service

What is input

- $100This type of unemployment is when individuals are qualified workers with transferable skills

are out of work

What is frictional unemployment

- $200This type of unemployment

results from economic downturns

What is cyclical unemployment

- $300

This type of unemployment means we have the natural rate of

unemployment or no cyclical unemployment

What is full unemployment

- $400This type of unemployment is

when changes in the structure of the labor force make some skills

obsolete

What is structural unemployment

- $500

Calculating unemployment rate can be done using this formula

What is (unemployed/labor force) x 100

- $100This is the dollar value of all

final goods and services produced within a country’s

border in one year

What is GDP

- $200These are the four components of

GDP

What are consumer spending, investments, government spending and net exports

- $300This type of GDP adjusts for

inflation

What is Real GDP

- $400In times of a recession, this will

occur to the Real GDP

What is decrease

- $500This formula is used to calculate

real GDP

What is (Nominal GDP/Price Index) x 100