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Study sets matching "economics chapter 5 macroeconomics"

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Study sets matching "economics chapter 5 macroeconomics"

90 terms
Economics Chapter 5 Macroeconomics Concerns
Which of the following is NOT a topic…
Which of the following is a topic stud…
Which of the following is a topic stud…
Prices that do not always adjust rapid…
C
A
B
B
Which of the following is NOT a topic…
C
Which of the following is a topic stud…
A
25 terms
Economics // Chapter 5 Content // Intro to Macroeconomics
business cycle
double-dip recession
yield curve
circular flow diagram
alternating increases and decreases in economic activity that…
a recession that begins after only a short period of economic…
shows the relationship between the interest rate earned on a…
illustrated how households and firms interact through product…
business cycle
alternating increases and decreases in economic activity that…
double-dip recession
a recession that begins after only a short period of economic…
30 terms
Macroeconomics Chapter 5- Graph Study
Economic Growth and Production Possibi…
Potential GDP- Potential GDP is a stra…
Economic Growth and Potential GDP- A p…
The Business Cycle- The rate of growth…
Economic Growth and Production Possibilities- Figure A shows…
Potential GDP- Potential GDP is a straight vertical line show…
Economic Growth and Potential GDP- A positive change in any o…
The Business Cycle- The rate of growth in real GDP reflects t…
Economic Growth and Production Possibi…
Economic Growth and Production Possibilities- Figure A shows…
Potential GDP- Potential GDP is a stra…
Potential GDP- Potential GDP is a straight vertical line show…
40 terms
Macroeconomics Chapter 5
Macroeconomics
Business cycles
peak
recession
Describes how individuals, business, financial institutions,…
Alternating increases and decreases in economic activity that…
highest point. usually means that the economy is operating at…
downturn. business react by curtailing hiring and perhaps lay…
Macroeconomics
Describes how individuals, business, financial institutions,…
Business cycles
Alternating increases and decreases in economic activity that…
27 terms
Chapter 5 Principles of Economic Behavior: Microeconomics and Macroeconomics
Budget Surplus
Central Authorities
Circular Flow
Deficit Spending
A surplus that occrurs when the government's revenues are gre…
All public agencies, generally referred to as "the government"
Movement from product markets to resources markets and back a…
Spending that occurs when the government's expenditures are g…
Budget Surplus
A surplus that occrurs when the government's revenues are gre…
Central Authorities
All public agencies, generally referred to as "the government"
70 terms
Macroeconomics Chapter 5
Gross Domestic Product (GDP) measures…
Which of the following statements rega…
Which of the following is not the prop…
Capital is a stock variable.
False
It is a stock variable.
the price of corn
True
Gross Domestic Product (GDP) measures…
False
Which of the following statements rega…
It is a stock variable.
45 terms
Chapter 5 Macroeconomics
Since 1955 Americans have been spendin…
When the C line crosses the 45-degree…
When disposable income is zero autonom…
The minimum amount that people will sp…
services
zero
total consumption
autonomous
Since 1955 Americans have been spendin…
services
When the C line crosses the 45-degree…
zero
16 terms
Macroeconomics Chapter 5
government failure
principal-agent problems
collective-action problems
special-interest effect
inefficiencies in resource allocation cause by problems in th…
at a firm, a conflict of interest that occur when agents (wor…
the idea that getting a group to pursue a common, collective…
any political outcome in which a small group ("self-interest"…
government failure
inefficiencies in resource allocation cause by problems in th…
principal-agent problems
at a firm, a conflict of interest that occur when agents (wor…
56 terms
Macroeconomics-Chapter 5 Test Study
(LO 2) T or F Aggregate demand is the…
(LO 2) T or F The foreign-trade effect…
(LO 2) T or F The aggregate supply cur…
(LO 2) T or F Macroeconomic equilibriu…
1. True
2. False: it is the effect which a change in the price level…
3. True
4. False: where aggregate demand equals the short-run aggrega…
(LO 2) T or F Aggregate demand is the…
1. True
(LO 2) T or F The foreign-trade effect…
2. False: it is the effect which a change in the price level…
25 terms
Macroeconomics chapter 5
Gross domestic product (GDP)
Final good or service
Intermediate good or service
Consumption expenditure
The market value of all the final goods and services produced…
A good or service that is produced for its final user and not…
A good or service that is used as a component of a final good…
The expenditure by households on consumption goods and servic…
Gross domestic product (GDP)
The market value of all the final goods and services produced…
Final good or service
A good or service that is produced for its final user and not…
15 terms
Chapter 5 - Macroeconomics
Elasticity
What does price elasticity of demand m…
What is the equation for the *price el…
What is the equation for calculating p…
A numerical measure of the responsiveness of *quantity demand…
How much quantity demanded responds to a change in price.
% change in Quantity Demanded / % change in Price
((end value - start value) / start value) X 100%
Elasticity
A numerical measure of the responsiveness of *quantity demand…
What does price elasticity of demand m…
How much quantity demanded responds to a change in price.
22 terms
Macroeconomics Chapter 5
Consumer price index (CPI)
Price index
Rate of inflation
Deflation
For any period, a measure of the cost in that period of a sta…
A measure of the average price of a given quality of goods or…
The annual percentage rate of change in the price level, as m…
A situation in which the prices of most goods and services of…
Consumer price index (CPI)
For any period, a measure of the cost in that period of a sta…
Price index
A measure of the average price of a given quality of goods or…
16 terms
Macroeconomics - Chapter 5 Terms
gross domestic product (GDP)
transfer payment
final goods
intermediate goods
the market value of all final goods and services produced in…
a government payment to individuals not in exchange for goods…
finished goods and services produced for the ultimate user.
goods and services used as inputs for the production of final…
gross domestic product (GDP)
the market value of all final goods and services produced in…
transfer payment
a government payment to individuals not in exchange for goods…
29 terms
Macroeconomics Chapter 5
National Income Accounting
Gross Domestic Product (GDP)
GDP Per Capita
Intermediate goods
The measurement of aggregated economic activity, particularly…
The total market value of all final goods and services produc…
Total GDP divided by total population; average GDP.
Goods or services purchased for use as input in the productio…
National Income Accounting
The measurement of aggregated economic activity, particularly…
Gross Domestic Product (GDP)
The total market value of all final goods and services produc…
64 terms
Macroeconomics Chapter 5
Gross Domestic Product (GDP) measures…
Which of the following statements rega…
Which of the following is NOT the prop…
Capital = stock variable. (T/F)
True
It is a stock variable. (GDP IS NOT A STOCK VARIABLE)
The price of corn
True
Gross Domestic Product (GDP) measures…
True
Which of the following statements rega…
It is a stock variable. (GDP IS NOT A STOCK VARIABLE)
12 terms
Macroeconomics Chapter 5
Closed Economy
Open Economy
Exogenous variable
Endogenous variable
No interaction with the rest of the world
Economy engaged in international trade
Variable determined outside the model
Variable determined by the model itself
Closed Economy
No interaction with the rest of the world
Open Economy
Economy engaged in international trade
48 terms
Macroeconomics Book Notes-chapter 5
This chapter introduces you to the agg…
You have learned to use the aggregate…
Potential GDP is the total amount that…
Potential GDP is the total amount that…
unemployment
illustrate
resources
employment
This chapter introduces you to the agg…
unemployment
You have learned to use the aggregate…
illustrate
22 terms
Macroeconomics Chapter 5
What are the economy's three economic…
What is market failure?
What can the government do to correct…
What will a unit tax do to a firm?
Individuals, Firms, Government
A situation in which an unrestrained market economy leads to…
Impose a tax so they can collect money to pay for recovery of…
It will increase the production costs
What are the economy's three economic…
Individuals, Firms, Government
What is market failure?
A situation in which an unrestrained market economy leads to…
30 terms
Introduction to Macroeconomics (Chapter 5)
Economy
Business Cycle
Gross Domestic Product (GDP)
Flow Variable
a structure of economic activity in a community, a region, a…
a cycle or series of cycles of economic expansion and contrac…
the market value of all FINAL goods/services produced in the…
a measure of something over an internal of time, such as your…
Economy
a structure of economic activity in a community, a region, a…
Business Cycle
a cycle or series of cycles of economic expansion and contrac…
26 terms
Macroeconomics Chapter 5
V =
Using GDP as a proxy for total transac…
Real money balances, or the purchasing…
A simple money demand function is
T/M
P×Y/M
M/P
(M/P)∧d=kY
V =
T/M
Using GDP as a proxy for total transac…
P×Y/M
20 terms
Principles of Macroeconomics, Chapter 5
aggregate behavior
sticky prices
business cycle
aggregate output
the behavior of all firms and households together
prices that do not always change rapidly in response to surpl…
cycle of short-term ups and downs in an economy
total quantity of goods and services produced in an economy i…
aggregate behavior
the behavior of all firms and households together
sticky prices
prices that do not always change rapidly in response to surpl…
17 terms
Macroeconomics Chapter 5
aggregate behavior
aggregate output
business cycle
circular flow
behavior of all households and firms together
total quantity of goods and services produced in econ in a gi…
cycle of short-term ups and downs in the economy
shows income received and payments made in each sector of the…
aggregate behavior
behavior of all households and firms together
aggregate output
total quantity of goods and services produced in econ in a gi…
30 terms
Macroeconomics Chapter 5- Graph Study
Economic Growth and Production Possibi…
Potential GDP- Potential GDP is a stra…
Economic Growth and Potential GDP- A p…
The Business Cycle- The rate of growth…
Economic Growth and Production Possibilities- Figure A shows…
Potential GDP- Potential GDP is a straight vertical line show…
Economic Growth and Potential GDP- A positive change in any o…
The Business Cycle- The rate of growth in real GDP reflects t…
Economic Growth and Production Possibi…
Economic Growth and Production Possibilities- Figure A shows…
Potential GDP- Potential GDP is a stra…
Potential GDP- Potential GDP is a straight vertical line show…
23 terms
Macroeconomics Chapter 5
National Income and Product Accounts (…
Gross Domestic Product (GDP)
Intermediate Goods
Final Goods
The national accounts that measure the overall production and…
The total market value for all final goods and services produ…
Products that are purchased for resale or further processing…
Products, capital goods, and services that have been purchase…
National Income and Product Accounts (…
The national accounts that measure the overall production and…
Gross Domestic Product (GDP)
The total market value for all final goods and services produ…
17 terms
Macroeconomics Chapter 5
Consumer Price Index (CPI)
Price Index
Rate of Inflation
Deflation
for any period, a measure of the cost in that period of a sta…
a measure of the average price of a given class of goods or s…
the annual percentage rate of change in the price level, as m…
a situation in which the prices of most goods and services ar…
Consumer Price Index (CPI)
for any period, a measure of the cost in that period of a sta…
Price Index
a measure of the average price of a given class of goods or s…
15 terms
Macroeconomics Chapter 5
National Income Accounting
Gross Domestic Product
Gross National Product
Intermediate Goods
The measurement of aggregate economic activity
The total market value of all goods and services produced wit…
Output produced by American owned factors of production regar…
Goods and services purchased for use as input in the producti…
National Income Accounting
The measurement of aggregate economic activity
Gross Domestic Product
The total market value of all goods and services produced wit…
25 terms
Macroeconomics Chapter 5
Microeconomics
Macroeconomics
Aggregate behavior
Sticky prices
Examines the functioning of individual industries and behavio…
Deals with the economy as a whole. Macroeconomics focuses on…
The behavior of all households and firms together
Prices that do not always adjust rapidly to maintain equality…
Microeconomics
Examines the functioning of individual industries and behavio…
Macroeconomics
Deals with the economy as a whole. Macroeconomics focuses on…
58 terms
chapter 5 macroeconomics fundemantals
Business cycle
Durable good
Non-durable goods
Double dip recession
4 phases... PEAK: the economy is at max capacity... RECESSION: occu…
(usually lasting for three years or more)
Non-durable goods are products that are consumed or are only…
A double-dip recession refers to a recession followed by a sh…
Business cycle
4 phases... PEAK: the economy is at max capacity... RECESSION: occu…
Durable good
(usually lasting for three years or more)
29 terms
Macroeconomics Chapter 5 Vocab
economy
gross product
gross domestic product
flow variable
describes the structure of economic activity, in a community,…
measures the market value of all final goods and services pro…
the market value of all final good and services produced in t…
a measure of something per period of time, such as your spend…
economy
describes the structure of economic activity, in a community,…
gross product
measures the market value of all final goods and services pro…
19 terms
Macroeconomics Chapter 5
Consumer Price Index (CPI)
Core Inflation Rate
Cyclical Unemployment
Deflation
An index that measures the average of the prices paid by urba…
The Fed's operational guide is the rate of increase in the co…
The higher than normal unemployment at a business cycle troug…
A persistently falling price level
Consumer Price Index (CPI)
An index that measures the average of the prices paid by urba…
Core Inflation Rate
The Fed's operational guide is the rate of increase in the co…
Macroeconomics chapter 5
Soul proprietorship
Partnership
Corporation
Corporate stock
A firm may be owned by one individual
Several individuals
Shareholders who owns stock in a firm
This section describes how the prices of shares in the owners…
Soul proprietorship
A firm may be owned by one individual
Partnership
Several individuals
25 terms
Macroeconomics Chapter 5
Unemployment
Aggregate Behavior
Stickey Price
Flexible Prince
Labor force who is able to work but cannot find work.
The behavior of all households and firms together.
Prices that do not always adjust rapidly to maintain equality…
Prices are easily adjustable.
Unemployment
Labor force who is able to work but cannot find work.
Aggregate Behavior
The behavior of all households and firms together.
21 terms
Macroeconomics: Chapter 5
absorption
balance of payments
balance of payments accounts
capital account
total spending by domestic residents (C^d + I^d + G)
the net increase in a country's official reserve assets
the record of a country's international transactions
encompasses unilateral transfers of assets between countries,…
absorption
total spending by domestic residents (C^d + I^d + G)
balance of payments
the net increase in a country's official reserve assets
10 terms
Macroeconomics Chapter 5
Health Care
Health Insurance
Fee-For-Service
Single-payer Health Care System
Goods and services, such as prescription drugs, consultations…
A contract under which a buyers agrees to make payments, or p…
a system under which doctors and hospitals receive a payment…
a system, such as the one in Canada, in which the government…
Health Care
Goods and services, such as prescription drugs, consultations…
Health Insurance
A contract under which a buyers agrees to make payments, or p…
11 terms
Macroeconomics, Chapter 5
aggregate behavior
aggregate output
recession
depression
the behavior of all households and firms together
total quantity of goods and services produced in an economy i…
a period during which aggregate output declines (conventional…
a prolonged and deep recession
aggregate behavior
the behavior of all households and firms together
aggregate output
total quantity of goods and services produced in an economy i…
26 terms
Macroeconomics- Chapter 5
economy
gross domestic product (GDP)
gross world product
flow variable
the structure of economic activity in a community, a region,…
the market value of all final goods and services produced in…
the market value of all final goods and services produced in…
a measure of something over an internal of time, such as your…
economy
the structure of economic activity in a community, a region,…
gross domestic product (GDP)
the market value of all final goods and services produced in…
25 terms
Macroeconomics Chapter 5
income per capita
recession
unemployed
unemployment rate
income per person
an economic downturn lasting at least two quarters
someone is unemployed if he or she does not have a job; has l…
the fraction of the labor force that is unemployed
income per capita
income per person
recession
an economic downturn lasting at least two quarters
12 terms
Macroeconomics Chapter 5
Price Elasticity of Demand
Midpoint Method
Elastic demand
Unit Elastic Demand
a measure of how much the quantity demanded of a good respond…
(q2-q1)/[(q2+q1)/2]
A situation in which consumer demand is sensitive to changes…
the type of demand that exists when the percentage change in…
Price Elasticity of Demand
a measure of how much the quantity demanded of a good respond…
Midpoint Method
(q2-q1)/[(q2+q1)/2]
25 terms
Principles of Macroeconomics Chapter 5
microeconomics
Macroeconomics
Aggregate Behavior
Sticky Prices
examines the functioning of individual industries and the beh…
deals with the economy as a whole. Focuses on the determinant…
The behavior of all households and firms together.
prices that do not always adjust rapidly to maintain equality…
microeconomics
examines the functioning of individual industries and the beh…
Macroeconomics
deals with the economy as a whole. Focuses on the determinant…
20 terms
Macroeconomics Chapter 5
Imports
Exports
Import/Export Examples
Trade Surplus
suspending by individuals/firms/governments for goods and ser…
goods and services made in one country and sold in another co…
-Technology... -Capital... -Information... -Labor... -Money
E > I, a country is producing more than they buy
Imports
suspending by individuals/firms/governments for goods and ser…
Exports
goods and services made in one country and sold in another co…
73 terms
Macroeconomics- Chapter 5-7 Concepts
Circular Flow Model
Ways of measuring GDP
Issues in calculating GDP (not on conc…
Nominal GDP
- Used to measure GDP:... - RESOURCES go: HOUSEHOLDS ---> FIRMS…
- A measure of the market value of all final goods and servic…
1) Market value: Value all goods and services at market price…
- Measures output using current prices of the year
Circular Flow Model
- Used to measure GDP:... - RESOURCES go: HOUSEHOLDS ---> FIRMS…
Ways of measuring GDP
- A measure of the market value of all final goods and servic…
27 terms
MACROECONOMICS - Chapter 5: Introduction to Macroeconomics
sticky prices
microeconomics
macroeconomics
aggregate behavior
prices that do not always adjust rapidly to maintain the equa…
examines the behavior of individual decision-making units--bu…
deals with the economy as a whole; it examines the behavior o…
refers to the behavior of all households and firms together
sticky prices
prices that do not always adjust rapidly to maintain the equa…
microeconomics
examines the behavior of individual decision-making units--bu…
11 terms
Macroeconomics Chapter 5
Welfare economics
Willingness to pay
Consumer surplus
Willingness to sell
is the branch of economics that studies how the allocation of…
is the maximum price a consumer will pay for a good
is the difference between the willingness to pay for a good a…
is the minimum price a seller will accept to sell a good or s…
Welfare economics
is the branch of economics that studies how the allocation of…
Willingness to pay
is the maximum price a consumer will pay for a good
29 terms
Chapter 5: Introduction to Macroeconomics
Microeconomics
Macroeconomics
sticky prices
business cycle
Focuses on the function of individual industries and the beha…
Deals with the economy as a whole. Focuses on the determinant…
prices that fail to adjust rapidly to maintain balance betwee…
the cycle of short-term ups and downs in the economy
Microeconomics
Focuses on the function of individual industries and the beha…
Macroeconomics
Deals with the economy as a whole. Focuses on the determinant…
21 terms
Macroeconomics Chapter 5
Inflation
Hyperinflation
Quantity equation
Transactions velocity of money
An increase in the overall level of prices
Extremely high inflation
The identity stating that the product and velocity of the mon…
The ratio of the dollar value of all transactions to the mone…
Inflation
An increase in the overall level of prices
Hyperinflation
Extremely high inflation
25 terms
Economics Chapter 5 Supply
supply
law of supply
supply schedule
market supply schedule
the desire and ability to produce and sell a product
states that when prices decrease, quantity supplied decreases…
lists how much of a good or service an individual producer is…
lists how much of a good or service all producers in a market…
supply
the desire and ability to produce and sell a product
law of supply
states that when prices decrease, quantity supplied decreases…
24 terms
Macroeconomics Chapter 5
Macroeconomics
Buisness Cycle
Three things that fall under Business…
Double dip recession
Study of how whole society interacts within and outside itsel…
Periodic fluctuation of economic activity (increase and decre…
-intensity and duration... -long term upward trend... -peak, recess…
Recovering economics doesn't reach former peak
Macroeconomics
Study of how whole society interacts within and outside itsel…
Buisness Cycle
Periodic fluctuation of economic activity (increase and decre…
25 terms
Economics Chapter 5 Supply
supply
law of supply
supply schedule
market supply schedule
the desire and ability to produce and sell a product
states that when prices decrease, quantity supplied decreases…
lists how much of a good or service an individual producer is…
lists how much of a good or service all producers in a market…
supply
the desire and ability to produce and sell a product
law of supply
states that when prices decrease, quantity supplied decreases…
136 terms
Macroeconomics Chapter 5
macroeconomics
macroeconomics
growth of output
growth of output
the study of economy-wide phenomena, including inflation, une…
growth of the economy and fluctuations in output, employment,…
makes higher levels of consumption and living standards possi…
the key to a higher living standard
macroeconomics
the study of economy-wide phenomena, including inflation, une…
macroeconomics
growth of the economy and fluctuations in output, employment,…
20 terms
Macroeconomics Chapter 5
The pursuit through government of a "t…
The government's ability to coerce can…
Suppose that in a series of paired-cho…
The government of Southland wants to i…
-rent-seeking behavior
-correcting market failures
-paradox of voting
-taxing polluters and subsidizing firms that are creating sig…
The pursuit through government of a "t…
-rent-seeking behavior
The government's ability to coerce can…
-correcting market failures
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