Part III Matching

__1. GDP Gap		
__2. Business Cycle		
__3. C + I + G  + Xn	
__4. Factors of Production	
__5. DPI			
__6. Discretionary Income	
__7. Autonomous Consumption	
__8. Induced Consumption	
__9. Permanent Income Hypothesis
__10. Fiscal Year		
__11. GDP Deflator		
__12. Misery Index		
__13. Full Employment GDP
__14. Keynesian Economics
__15. Aggregate Demand
__16. Dissavings
__17. Capital Goods 
__18. Externalities
__19. Alienation
__20. Anomie
__21. Keynesian Cross
__22. Regressive Tax
__23. Progressive Tax
__24. Consumption Tax
__25. Unemployment Rate
__26. Rational Expectations
























Answers to Matching III

A. Combines the unemployment rate and the rate of inflation.
B. Property Taxes and Social Security Taxes are examples of this.
C. expansion, peak, contraction, trough
D. land, labor, capital, and entrepreneurship.
E. in Liebniz theory of the monad, this is the psychological state that leads to alienation.
F. governmental budget year.
G. the difference between actual output and potential output.
H. that part of income for which real choices as to consumption and investment are possible.
I. the fundamental concern in Keynesian economics is to raise the level of this. 
J. additional consumption attributable to an increase of income.
K. on the Keynesian cross curve, this is the aggregate amount of consumption above disposable income.
L. plots expenditures for consumption against disposable income
changes about a bisecting line which shows savings and dissavings.
M. in Marxian analysis, this results from over-specialization and the expropriation of surplus value and
detachment feom the productive process, dependent on what stage of Marx's analysis you look at.
N. goods the function of which is the production of consumer goods and services.
O. from Milton Friedman, this holds that additional income will be treated by a recepient in the same way
as previous income was.
P. suggests that people act as if they will continue to see the same kind of economic conditions as they
have recently experienced.
Q. is calculated by dividing the number of unemployed persons by the workforce.
R. Japanese tax rates appear higher than ours but are not because they only tax expenditures and not
savings.
S. method for adjusting nominal value of goods and services produced to reflect the rate of inflation.
T. somewhat like 'take home pay,' it is the income available for paying the costs of living. 
U. what the value of goods and services produced would be if there was only frictional unemployment.
V. major concern is governmental policy to close the GDP gap by increasing government expenditure 
W. cost and benefit results of productive process which affect those not immediately involved in that
process.
X.  one of the ways to estimate GDP, and which suggests one of the problems with Keynesian analysis in
that it clearly shows that increasing governmental expenditure, which must come out of consumption or
investment, will not do quite what Keynes suggested it would. 
Y. the federal graduated income tax is perhaps the best example of this which places higher tax rates on
higher income levels.
Z. an amount of expenditure required for subsistence even given no income.


71-78 A
63-70 B
55-62 C
47-54 D






        The test is due by Thursday, Feb. 19, 1998


THIS HAS BEEN A TEST


Return to Beginning of Mid-Term

Return to Part II of Mid-Term