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Terms in this set (11)
Which arrow represents the flow of factors of production?
Which arrow represents the flow of household expenditures?
What sort of transactions have a direct and immediate effect on GDP?
A customer buys a glass of wine in a restaurant.
The three approaches to measuring economic activity are the:
production, income, and expenditure approaches.
Uses current prices to value the economy's production of goods and services in that year. (Changes in nominal GDP reflect both changes in the quantities of goods and services and their prices)
Uses constant (base-year) prices to place a value production of goods and services.
(Changes in real GDP reflect only changes in the quantity of goods and services.)
As the economy enters a boom we can generally expect that :
Inflation will increase and the unemployment rate will decrease.
During recessions, the unemployment rate ___________ and output ___________.
Classical economists argue that:
government policies will be ineffective and counterproductive.
Keynes was motivated to create a macroeconomic theory different from classical theory because:
Classical theroy was inconsistent with the Great Depression.
Gross Domestic Product
Market value of all final goods and services produced within a
country in a given time period.
THIS SET IS OFTEN IN FOLDERS WITH...
4. Money Inflation & Monetary System
1. Intro to Maco & GDP
6. Exchange Rates and the Real Exchange Rate
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