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Study sets matching "macro economics"

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Study sets matching "macro economics"

708 terms
Macro Economics
Positive Externality
Consumer Price Index
Gross Domestic Product
Economics
Beneficial side effect that affects an uninvolved third party…
an index of the cost of all goods and services to a typical c…
The sum total of the value of all the goods and services prod…
The study of scarcity and resources as a social science. Stud…
Positive Externality
Beneficial side effect that affects an uninvolved third party…
Consumer Price Index
an index of the cost of all goods and services to a typical c…
94 terms
Macro-Economics
5 Major policies of a government
3 Methods of measuring GDP
Formula for GDP
Definition of GDP
Full employment... Economic Growth... Economic Development (FEEEP)…
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
GDP = C+ I + G + (X - M)... C = consumption... I = Investment... G = G…
Measures the output produced by factors of production located…
5 Major policies of a government
Full employment... Economic Growth... Economic Development (FEEEP)…
3 Methods of measuring GDP
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
142 terms
Macro-Economics
Five major objectives of macroeconomic…
Describe, using a diagram,... the circula…
Identify the four factors... of productio…
Relationship between income flow, expe…
•Economic growth: A steady rate of increase of national outpu…
Income flowing into the flow is known as injections, and inco…
•factors of production households provide to firms:... →land... →la…
Income flow=expenditure flow + output flow
Five major objectives of macroeconomic…
•Economic growth: A steady rate of increase of national outpu…
Describe, using a diagram,... the circula…
Income flowing into the flow is known as injections, and inco…
5 terms
Macro Economics
Government Policy
Fiscal Policy
Monetary Policy
Government Instruments
...
Government Policy
Fiscal Policy
22 terms
Economics Macro
Circular Flow of Income
4 Objectives the Government has
AD
AS
Households- provide factors of production (Land, Labour, Capi…
Full Employment... Stable Inflation ... GDP Growth... Balance of Payme…
The total demand for all goods and service provided in a coun…
The total supply of all goods and services provided in a coun…
Circular Flow of Income
Households- provide factors of production (Land, Labour, Capi…
4 Objectives the Government has
Full Employment... Stable Inflation ... GDP Growth... Balance of Payme…
12 terms
Macro-economics
macroeconomics
GDP
CPI
inflation
the study of economy-wide phenomena, including inflation, une…
the total market value of all final goods and services produc…
A measure that examines the weighted average of prices of a b…
A continuous rise in the price of goods and services
macroeconomics
the study of economy-wide phenomena, including inflation, une…
GDP
the total market value of all final goods and services produc…
328 terms
Macro Economics
Inflation is measured by the
Index of GDP in year x =
Nominal value of something measured in…
A index number is useful it you want t…
annual % change in the consumer prices index
GDP in year x/GDP in base year * 100
simple unadjusted numerical value (distorted by inflation)
change in a relative value at a particular point in time
Inflation is measured by the
annual % change in the consumer prices index
Index of GDP in year x =
GDP in year x/GDP in base year * 100
35 terms
Macro economics
Economics
scarcity
Labor
land
how ppl allocate limited resources as they strive to satisfy…
inability to satsify all our wants
wages
Rent
Economics
how ppl allocate limited resources as they strive to satisfy…
scarcity
inability to satsify all our wants
33 terms
Macro Economics
Scarcity refers to the situation in wh…
Economics
The term "Market" in economics refers to
Economists assume that
unlimited wants exceed limited resources
the study of the choices people make to attain their goals, g…
a group of buyers and sellers of a product and the arrangemen…
optimal decisions are made at the margin
Scarcity refers to the situation in wh…
unlimited wants exceed limited resources
Economics
the study of the choices people make to attain their goals, g…
50 terms
Macro-Economics
5 Major policies of a government
3 Methods of measuring GDP
Formula for GDP
Definition of GDP
Full employment... Economic Growth... Economic Development (FEEEP)…
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
GDP = C+ I + G + (X - M)... C = consumption... I = Investment... G = G…
Measures the output produced by factors of production located…
5 Major policies of a government
Full employment... Economic Growth... Economic Development (FEEEP)…
3 Methods of measuring GDP
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
40 terms
Macro Economics
What is an Economy?
What is the Circular Flow of Income?
How is money transferred from househol…
How is money transferred from business…
An economy is the flow of money within a country with money b…
The circular flow of income is the flow of money between hous…
Money is transferred to businesses from households due to the…
Money is transferred to businesses from households due to:... ∙…
What is an Economy?
An economy is the flow of money within a country with money b…
What is the Circular Flow of Income?
The circular flow of income is the flow of money between hous…
21 terms
macro economics
utility
OPPURTUNITY COST
Mirco
MACRO
(satisfaction) a consumer obtains from the consumption of a g…
(always forgone opp) (scarcity...must make choices...opportun…
individual sectors of the economy
Economy as a whole
utility
(satisfaction) a consumer obtains from the consumption of a g…
OPPURTUNITY COST
(always forgone opp) (scarcity...must make choices...opportun…
526 terms
macro economics
In November 2010 the labor force in Si…
The _______ argument points out that i…
The unemployment rate may underestimat…
Freelife, New Hampshire has a labor of…
2.1%
adverse selection of wage cuts
many part-time employees would like to work fulltime, but are…
8.3%; 60%
In November 2010 the labor force in Si…
2.1%
The _______ argument points out that i…
adverse selection of wage cuts
54 terms
Macro Economics - Chapter 13
Aggregate demand
aggregate demand equaion:
All else being equal, increases in the…
Wealth is
is the spending side of the economy. When people spend on goo…
consumption (C), investment (I), government (G), and net expo…
decreases in the quantity of aggregate demand.
the value of one's accumulated assets.
Aggregate demand
is the spending side of the economy. When people spend on goo…
aggregate demand equaion:
consumption (C), investment (I), government (G), and net expo…
27 terms
economics macro
what are the 4 government aims?
what does GDP measure?
what are the 3 withdrawals in the circ…
what are the 3 injections in the circu…
1. economic growth... 2. balance of payments... 3. reducing unemplo…
the flow of outputs
savings... taxation... imports
investment... government spending... exports
what are the 4 government aims?
1. economic growth... 2. balance of payments... 3. reducing unemplo…
what does GDP measure?
the flow of outputs
89 terms
Macro Economics - Exam 1
Unemployment
unemployment rate (u)
Creative destruction
structural unemployment
occurs when a worker who is not currently employed is searchi…
is the percentage of the labor force that is unemployed.
occurs when the introduction of new products and technologies…
which is caused by changes in the industrial makeup (structur…
Unemployment
occurs when a worker who is not currently employed is searchi…
unemployment rate (u)
is the percentage of the labor force that is unemployed.
23 terms
MacroEconomics Introduction
economic scarcity
factors of production
macroeconomics
production possibilities curve
fundamental economic problem of having seemingly unlimited hu…
Land, labor, capital and entrepreneurship; the four groups of…
Examines economy as whole or its basic subdivisions/aggregate…
A curve showing the different combinations of two goods or se…
economic scarcity
fundamental economic problem of having seemingly unlimited hu…
factors of production
Land, labor, capital and entrepreneurship; the four groups of…
55 terms
Macro-economics L6
Macroeconomics
Nominal value
Real value
Index number
The study of the interrelationships between economic variable…
The value of an economic variable based on current prices, ta…
The value of an economic variable, taking account of changing…
A device for comparing the value of a variable in one period…
Macroeconomics
The study of the interrelationships between economic variable…
Nominal value
The value of an economic variable based on current prices, ta…
43 terms
Macro Economics - Chapter 9
loanable funds market
Figure 9.1 illustrates the role of the…
Figure 9.2 shows the production timeli…
An interest rate is a
is the market where savers supply funds for loans to borrowers
The market for loanable funds is where savers bring funds and…
The production timeline illustrates that GDP depends critical…
price of loanable funds. It is like the price of toothpaste o…
loanable funds market
is the market where savers supply funds for loans to borrowers
Figure 9.1 illustrates the role of the…
The market for loanable funds is where savers bring funds and…
12 terms
Macro economics
mpc
mps
mpm
mtr
marginal propensity to consume
marginal propensity to save
marginal propensity to import
marginal tax rate
mpc
marginal propensity to consume
mps
marginal propensity to save
98 terms
Macro Economics
Between the Troubled Asset Relief Prog…
The largest and most complex economy i…
Gross world product is
If the government owes $3,500 billion…
tripled
the United States
the value of all final goods and services produced in the wor…
the debt is $3,800 billion and the deficit is $300 billion
Between the Troubled Asset Relief Prog…
tripled
The largest and most complex economy i…
the United States
20 terms
Economics- Macro
Macroeconomics
recovery
prosperity
recession
concerns itself with the behaviors of entire economic systems…
period of expansion is characterized by an increase in the gr…
an extended period of economic expansion; characterized by su…
a period of economic contraction
Macroeconomics
concerns itself with the behaviors of entire economic systems…
recovery
period of expansion is characterized by an increase in the gr…
94 terms
Macro-Economics
5 Major policies of a government
3 Methods of measuring GDP
Formula for GDP
Definition of GDP
Full employment... Economic Growth... Economic Development (FEEEP)…
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
GDP = C+ I + G + (X - M)... C = consumption... I = Investment... G = G…
Measures the output produced by factors of production located…
5 Major policies of a government
Full employment... Economic Growth... Economic Development (FEEEP)…
3 Methods of measuring GDP
Output (O)... Expenditure (E)... Income (Y)... O-E-Y
12 terms
Macro-Economics
macroeconomics
gdp
cpi
inflation
the study of economy-wide phenomena, including inflation, une…
the total market value of all final goods and services produc…
(consumer price index) a measure of the overall cost of the g…
A continuous rise in the price of goods and services
macroeconomics
the study of economy-wide phenomena, including inflation, une…
gdp
the total market value of all final goods and services produc…
130 terms
Macro Economics Final
True
False
False (70%)
True
True or false? Nike's shoes manufactured in Vietnam are not i…
True or false? The Trans-Pacific Partnership is not expected…
True or false? Consumer expenditures account for about 55 per…
True or false? The purchase of stocks and bonds are not inclu…
True
True or false? Nike's shoes manufactured in Vietnam are not i…
False
True or false? The Trans-Pacific Partnership is not expected…
65 terms
Macro economics
Expenditures approach
Income approach
Nominal GDP
Real GDP
the method that adds all expenditures made for final goods an…
a method used to calculate GDP by summing up all incomes rece…
the production of goods and services valued at current prices…
GDP expressed in constant, or unchanging, prices. On y-axis o…
Expenditures approach
the method that adds all expenditures made for final goods an…
Income approach
a method used to calculate GDP by summing up all incomes rece…
431 terms
Macro Economics ******
Recession come at
Government expenditures on capital goo…
When the price level falls, people wan…
Optimism... Imagine that the economy is i…
irregular intervals. During recessions investment spending fa…
false
hold less money and the quantity of aggregate goods and servi…
short-run aggregate supply left.
Recession come at
irregular intervals. During recessions investment spending fa…
Government expenditures on capital goo…
false
24 terms
Macro Economics - Chapter 7
Unemployment
unemployment rate (u)
Creative destruction
structural unemployment
occurs when a worker who is not currently employed is searchi…
is the percentage of the labor force that is unemployed.
occurs when the introduction of new products and technologies…
which is caused by changes in the industrial makeup (structur…
Unemployment
occurs when a worker who is not currently employed is searchi…
unemployment rate (u)
is the percentage of the labor force that is unemployed.
7 terms
Macro-Economics
Liquid
Narrow Money (M0)
Broad Money (M4)
Transactions demand
The ease at which assets can be converted into cash
This is the level of notes and coins in circulation plus the…
the level of notes and coins in circulation plus the Bank Acc…
This is the largest component of total demand for money. It i…
Liquid
The ease at which assets can be converted into cash
Narrow Money (M0)
This is the level of notes and coins in circulation plus the…
62 terms
Macro Economics
Gross domestic product (GDP)
What does the government includes in o…
When one person sells a used car to an…
GDP Formula
is the market value of all final goods and services produced…
By estimating its rental value.
T
Y=C+I+G+NX
Gross domestic product (GDP)
is the market value of all final goods and services produced…
What does the government includes in o…
By estimating its rental value.
227 terms
macro economics
the value of the best alternative forg…
d
economists sometimes make normative ju…
opinion and subjective
Opportunity cost is:
An example of a positive statement is:... a. The rate of unemplo…
Many disagreements among economists result because:
normative is a
the value of the best alternative forg…
Opportunity cost is:
d
An example of a positive statement is:... a. The rate of unemplo…
33 terms
Macro Economics
Factors of Productions
Return to Factors of Production
The Circular Flow of Income
Goods/ Consumer Market
Land, Labor, Capital, Enterprise
Rent, Wages, Interest, Profit
The interdependence of goods markets and factor markets
Final/ Finished goods and services
Factors of Productions
Land, Labor, Capital, Enterprise
Return to Factors of Production
Rent, Wages, Interest, Profit
28 terms
MacroEconomics
Macroeconomics
Micro
Positive Economics
Normative Econ
study of the whole economy
study of part of the economy with taking the rest as remainder
Studies what is
Studies what ought to be
Macroeconomics
study of the whole economy
Micro
study of part of the economy with taking the rest as remainder
31 terms
macro economics
utility
OPPURTUNITY COST
Mirco
MACRO
(satisfaction) a consumer obtains from the consumption of a g…
(always forgone opp) (scarcity...must make choices...opportun…
individual sectors of the economy
Economy as a whole
utility
(satisfaction) a consumer obtains from the consumption of a g…
OPPURTUNITY COST
(always forgone opp) (scarcity...must make choices...opportun…
20 terms
Macro Economics
GDP
Unemployment
Consumer Price Index
Stagflation
Gross Domestic Product- the total market value of all final g…
Measures the number of people who are able to work, but do no…
Used to measure inflation
a period of slow economic growth and high unemployment (stagn…
GDP
Gross Domestic Product- the total market value of all final g…
Unemployment
Measures the number of people who are able to work, but do no…
92 terms
Macro economics
Aggregate demand definition
Aggregate demand formula
Give 4 reasons why aggregate demand mi…
What causes a shift left in aggregate…
the total demand for a country's goods and services at a give…
AD= C+I+G(x-m)
increase of consumer expenditure... increase in government expe…
Increase in compulsory pension contributions... Increase in VAT…
Aggregate demand definition
the total demand for a country's goods and services at a give…
Aggregate demand formula
AD= C+I+G(x-m)
45 terms
Economics Macro
GDP
GNP
GNI
purchasing power parity
a measure of the output (goods and services) of total market…
GDP the total market value of goods and services produced ove…
is GDP plus net overseas income (property and labour) from ab…
When making comparisons between countries which use different…
GDP
a measure of the output (goods and services) of total market…
GNP
GDP the total market value of goods and services produced ove…
23 terms
Macro Economics
Unemployment
Full Employment
what is considered full employment
Frictional Unemployment
The percentage of the labor force that is jobless and activel…
A level of unemployment in which none of the unemployment is…
4-6 percent
Temporary unemployment
Unemployment
The percentage of the labor force that is jobless and activel…
Full Employment
A level of unemployment in which none of the unemployment is…
40 terms
MacroEconomics
Macroeconomics
Variables studied in Macroeconomics
GDP
Four Economic Sectors that make up a c…
Economics at a much larger level-looks at economic trends and…
Output... Consumption... Investment... Government Spending... Net Exports
Gross Domestic Product-overall economic condition of a nation.
Consumers... Business... Government Spending... Foriegn Sector
Macroeconomics
Economics at a much larger level-looks at economic trends and…
Variables studied in Macroeconomics
Output... Consumption... Investment... Government Spending... Net Exports
75 terms
MacroEconomics
Income
Inflation
Unemployment
Expansion
The financial gain accruing over a given period of time. Usua…
A general increase in price.
The state of not having a job. Jobless.
The act of the economy increasing in size or volume.
Income
The financial gain accruing over a given period of time. Usua…
Inflation
A general increase in price.
64 terms
macro economics
Circular flow diagram Definition
Production Possibilities Frontier (PPF…
Points outside PPF
Points on PPF line
How dollars flow through markets among households and firms
Combinations of output based on available factors of producti…
Not feasible, not possible
Efficient
Circular flow diagram Definition
How dollars flow through markets among households and firms
Production Possibilities Frontier (PPF…
Combinations of output based on available factors of producti…
5 terms
macro economics
GDP
components of GDP
Define multiplier
Marginal rate of tax
Gross Domestic Product- the total market value of all final g…
consumer spending, business spending, government spending, an…
the ratio of the total change in real GDP casued by an autono…
The proportion of an additional pound of income which goes in…
GDP
Gross Domestic Product- the total market value of all final g…
components of GDP
consumer spending, business spending, government spending, an…
21 terms
Macro Economics
Define Macroeconomics:
Define Aggregate Demand
Define Countercyclical:
Define Stabilisation Policy:
Macroeconomics is the study of the economy as a whole or econ…
Aggregate demand is the total demand for final goods and serv…
...
...
Define Macroeconomics:
Macroeconomics is the study of the economy as a whole or econ…
Define Aggregate Demand
Aggregate demand is the total demand for final goods and serv…
33 terms
Macro economics
Acclerator effect
Aggregate demand
Aggregate supply
Balance of payments
The relation between the change in new investment and the rat…
total planned expenditure in an economy measured by C + I + G…
The total value of goods and services supplied in an economy.
Exports minus imports. A record of all the currency that flow…
Acclerator effect
The relation between the change in new investment and the rat…
Aggregate demand
total planned expenditure in an economy measured by C + I + G…
82 terms
Macro Economic
GDP
Economic Growth
Unemployment
UK unemployment example
the sum total of all goods and services in an economy
increase in a country's real GDP over time UK $2.8 tril
those people willing and able to work but do not have a job
1.8 million 5.1%
GDP
the sum total of all goods and services in an economy
Economic Growth
increase in a country's real GDP over time UK $2.8 tril
68 terms
Economics Macro
Accelerator theory
Aggregate Demand
Aggregate Supply
Balance of payments
Where increases in national income leads to firms spending mo…
Total planned expenditure
The total expenditure in the economy
A record of a country's international transactions over a year
Accelerator theory
Where increases in national income leads to firms spending mo…
Aggregate Demand
Total planned expenditure
18 terms
Macro Economics
Inflation
Demand Pull inflation
Cost Push inflation
Real Income
When there is a general increase in the price level and when…
When aggregate demand outweighs aggregate supply
When the cost of production increases and a firm will pass th…
When a figure has been adjusted for the inflation in the econ…
Inflation
When there is a general increase in the price level and when…
Demand Pull inflation
When aggregate demand outweighs aggregate supply
15 terms
Macro Economics
GDP
CPI
Industrial Production
Unemployment rate
The measure of a nations total economic activity.
examines the weighted average prices of a basket of consumer…
measure of output in the industrial sector.
the rate of unemployment in a country
GDP
The measure of a nations total economic activity.
CPI
examines the weighted average prices of a basket of consumer…
58 terms
Macro-Economics
fiscal policy
expansionary policies
contractionary policies
stabilization policies
Changes in government taxes and spending that affect the leve…
Government policy actions that lead to increases in aggregate…
Government policy actions that lead to decreases in aggregate…
Policy actions taken to move the economy closer to full emplo…
fiscal policy
Changes in government taxes and spending that affect the leve…
expansionary policies
Government policy actions that lead to increases in aggregate…
59 terms
Macro Economics
Accelerator Effect
Animal Spirits
Austerity
Aggregate Supply shock
Planned capital investment rises due to posotive expectations…
State of confidence held by consumers
Measures by the government to reduce the budget deficit
Inflation or real national output rising causing a rise in pr…
Accelerator Effect
Planned capital investment rises due to posotive expectations…
Animal Spirits
State of confidence held by consumers
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