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Study sets matching "macroeconomics chapter 13"

Macroeconomics Chapter 13
federal budget
fiscal policy
Council of Economic Advisers
receipts
an annual statement of the outlays and receipts of the govern…
the use of the federal budget to achieve macroeconomic object…
monitors the economy and keeps the President and the public i…
the government's tax revenues; these come from 4 sources 1) p…
federal budget
an annual statement of the outlays and receipts of the govern…
fiscal policy
the use of the federal budget to achieve macroeconomic object…
20 terms
Macroeconomics Chapter 13
Capital Investment
Capital investment & Productivity
Financial System
Financial Markets
Funds invested in a firm or enterprise for the purposes of fu…
Capital investment makes it possible to increase productivity.
The group of institutions in the economy that help to match o…
Financial institutions through which savers can directly prov…
Capital Investment
Funds invested in a firm or enterprise for the purposes of fu…
Capital investment & Productivity
Capital investment makes it possible to increase productivity.
18 terms
Chapter 13 Macroeconomics
fiscal policy
Council of Economic Advisers (CEA)
expansionary fiscal policy
budget deficit
Changes in government spending and tax collections designed t…
A group of three persons that advises and assists the preside…
An increase in government purchases of goods and services, a…
The amount by which expenditures exceed revenues in any year.
fiscal policy
Changes in government spending and tax collections designed t…
Council of Economic Advisers (CEA)
A group of three persons that advises and assists the preside…
40 terms
Chapter 13 - Macroeconomics
fiscal policy
nondiscretionary fiscal polichy
Council of Economic Advisers CEA
expansionary fiscal policy
also called discretionary fiscal policy; changes in govt spen…
passive or automatic fiscal policy changes that take place wi…
a group of three persons that advises and assists the preside…
an increase in govt purchases of goods and services, a decrea…
fiscal policy
also called discretionary fiscal policy; changes in govt spen…
nondiscretionary fiscal polichy
passive or automatic fiscal policy changes that take place wi…
20 terms
Chapter 13 - Macroeconomics
fiscal policy
nondiscretionary fiscal polichy
Council of Economic Advisers CEA
expansionary fiscal policy
also called discretionary fiscal policy; changes in govt spen…
passive or automatic fiscal policy changes that take place wi…
a group of three persons that advises and assists the preside…
an increase in govt purchases of goods and services, a decrea…
fiscal policy
also called discretionary fiscal policy; changes in govt spen…
nondiscretionary fiscal polichy
passive or automatic fiscal policy changes that take place wi…
9 terms
AP MACROECONOMICS CHAPTER 13 VOCABULARY
Fractional Reserve Banking System
Balance sheet
Vault Cash
Required Reserves
A reserve requirement that is less than 100% of the checkable…
A statement of the assets, liabilities and net worth of a fir…
The currency a bank has in its vault and cash drawers
The funds that banks and thrifts must deposit with the federa…
Fractional Reserve Banking System
A reserve requirement that is less than 100% of the checkable…
Balance sheet
A statement of the assets, liabilities and net worth of a fir…
20 terms
Macroeconomics Chapter 13
Capital Investment
Capital investment & Productivity
Financial System
Financial Markets
Funds invested in a firm or enterprise for the purposes of fu…
Capital investment makes it possible to increase productivity.
The group of institutions in the economy that help to match o…
Financial institutions through which savers can directly prov…
Capital Investment
Funds invested in a firm or enterprise for the purposes of fu…
Capital investment & Productivity
Capital investment makes it possible to increase productivity.
10 terms
Macroeconomics Chapter 13
Long-Run Equilibrium
Short-Run Equilibrium
Aggregate Demand (AD) Curve
Monetary Policy Rule
a situation in which the AD and AS curves intersect at potent…
a situation where the AD and AS curves intersect at a level o…
a curve that shows the amount of output consumers, firms, gov…
a rule that describes how a central bank, like the Fed, takes…
Long-Run Equilibrium
a situation in which the AD and AS curves intersect at potent…
Short-Run Equilibrium
a situation where the AD and AS curves intersect at a level o…
23 terms
Macroeconomics Chapter 13
Financial System
Financial Markets
Bond
Stock
The group of institutions that helps match the saving of one…
Institutions through which savers can directly provide funds…
A certificate of indebtedness
A claim to partial ownership in a firm.
Financial System
The group of institutions that helps match the saving of one…
Financial Markets
Institutions through which savers can directly provide funds…
20 terms
Macroeconomics Chapter 13
Medium of exchange
Budget deficit
Closed economy
Financial intermediaries
Spendable asset such as a checking deposit
A shortfall of tax revenue relative to government spending ca…
An economy with no international transactions
Financial institutions through which savers can indirectly le…
Medium of exchange
Spendable asset such as a checking deposit
Budget deficit
A shortfall of tax revenue relative to government spending ca…
12 terms
Macroeconomics Chapter 13
Aggregate supply
Aggregate demand
Fiscal policy
Monetary policy
The relationship between the quantity of real GDP supplied an…
The relationship between the quantity of real GDP demanded an…
Changing taxes, transfer payments, and government expenditure…
Changing the quantity of money and the interest rate.
Aggregate supply
The relationship between the quantity of real GDP supplied an…
Aggregate demand
The relationship between the quantity of real GDP demanded an…
89 terms
Chapter 13 Macroeconomics
the AD and AS curves intersect at pote…
the AD and AS curves intersect at a le…
either the AD curve or the AS curve
either the AD curve or the AS curve
The economy is in long-run equilibrium when
Th economy is in short-run equilibrium when
Shifts in ___ can push the economy out of long-run equilibrium
shifts in ____ can return the economy to long-run equilibrium
the AD and AS curves intersect at pote…
The economy is in long-run equilibrium when
the AD and AS curves intersect at a le…
Th economy is in short-run equilibrium when
11 terms
Macroeconomics chapter 13
Barter
money
transactions account
money supply (M1)
The direct exchange of one good for another, without the use…
Anything generally accepted as a medium of exchange
A bank account that permits direct payment to a third party
currency held by the public, plus balances in transactions ac…
Barter
The direct exchange of one good for another, without the use…
money
Anything generally accepted as a medium of exchange
15 terms
Macroeconomics Chapter 13
monetary policy
expansionary monetary policy
contractionary monetary policy
central bank
a policy of influencing the economy through changes in the ba…
a policy that increases the money supply and decreases the in…
a policy that decreases the money supply and increases the in…
a type of banker's bank whose financial obligations underlie…
monetary policy
a policy of influencing the economy through changes in the ba…
expansionary monetary policy
a policy that increases the money supply and decreases the in…
20 terms
Macroeconomics Chapter 13
Medium of exchange
Budget deficit
Closed economy
Financial intermediaries
Spendable asset such as a checking deposit
A shortfall of tax revenue relative to government spending ca…
An economy with no international transactions
Financial institutions through which savers can indirectly le…
Medium of exchange
Spendable asset such as a checking deposit
Budget deficit
A shortfall of tax revenue relative to government spending ca…
35 terms
Macroeconomics, CHAPTER 13
Financial system
Financial Markets
Bond
Date of Maturity
The institutions that help to match one person's saving with…
The institution through which a person who wants to save can…
A certificate of indebtedness that specifies the obligations…
Time at which the loan will be repaid.
Financial system
The institutions that help to match one person's saving with…
Financial Markets
The institution through which a person who wants to save can…
12 terms
Macroeconomics Chapter 13
Barter
Money
Money Supply (M1)
Transactions Account
The direct exchange of one good for another, without the use…
Anything generally accepted as a medium of exchange
Currency held by the public, plus balances in transactions ac…
A bank account that permits direct payment to a third party -…
Barter
The direct exchange of one good for another, without the use…
Money
Anything generally accepted as a medium of exchange
20 terms
Macroeconomics Chapter 13
Investment
Financial Systems
Financial Markets
Lenders and borrowers
Determined by productivity, capital per worker, human capital…
The group of institutions in the economy that help to match o…
Financial institutions through which savers can directly prov…
Lenders are savers and buy bonds. Borrowers sell them.
Investment
Determined by productivity, capital per worker, human capital…
Financial Systems
The group of institutions in the economy that help to match o…
11 terms
Macroeconomics Chapter 13
Social Insurance
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Lump-sum taxes
Social Insurance programs are government programs intended to…
Expansionary Fiscal Policy is fiscal policy that increases ag…
Contractionary Fiscal Policy is fiscal policy that reduces ag…
Lump-sum taxes are taxes that don't depend on the taxpayers i…
Social Insurance
Social Insurance programs are government programs intended to…
Expansionary Fiscal Policy
Expansionary Fiscal Policy is fiscal policy that increases ag…
12 terms
Macroeconomics chapter 13
aggregate demand and aggregate supply…
aggregate demand (AD) curve
short-run aggregate supply (SRAS) curve
wealth effect
a model that explains short-run fluctuations in real GDP and…
a curve that shows the relationship between the price level a…
a curve that shows the relationship in the short run between…
the effect of the price level on consumption, and it is one r…
aggregate demand and aggregate supply…
a model that explains short-run fluctuations in real GDP and…
aggregate demand (AD) curve
a curve that shows the relationship between the price level a…
29 terms
Macroeconomics Chapter 13
Money
Means of Payment
Cash in the Hands of the Public
Money Supply
an asset widely accepted as a means of payment
anything acceptable as payment for goods and services
currency and coins held by the non-bank public
the total amount of money (cash, checking, and traveler's che…
Money
an asset widely accepted as a means of payment
Means of Payment
anything acceptable as payment for goods and services
28 terms
Macroeconomics- Chapter 13
double coincidence of wants
money
medium of exchange
commodity money
two traders are willing to exchange their products directly
anything that is generally accepted in exchange for goods and…
anything that facilitates trade by being generally accepted b…
anything that serves both as money and as a commodity; money…
double coincidence of wants
two traders are willing to exchange their products directly
money
anything that is generally accepted in exchange for goods and…
17 terms
Macroeconomics chapter 13
money
medium of exchange
barter
double coincidence of wants
any items that are regularly used in economic transactions or…
any item the buyers give sellers when purchasing goods and se…
the exchange of one good of service for another (similar to a…
the problem in the system of barter that one person may not h…
money
any items that are regularly used in economic transactions or…
medium of exchange
any item the buyers give sellers when purchasing goods and se…
23 terms
Macroeconomics Chapter 13
Medium of Exchange
Fiat Money
Unit of Account (Standard of Value)
Liquidity
An asset that is used to buy and sell goods or services
Money that has neither intrinsic value nor the backing of a c…
A unit of measurement used by people to post prices and keep…
How easy it is to convert something into cash
Medium of Exchange
An asset that is used to buy and sell goods or services
Fiat Money
Money that has neither intrinsic value nor the backing of a c…
31 terms
Macroeconomics Chapter 13
Financial market
Market for loanable funds
Savings
Investment
A market in which people trade future claims on funds or goods.
A market in which savers supply funds to those who want to bo…
The portion of income that is not immediately spent on consum…
Spending on productive inputs, such as factories, machinery,…
Financial market
A market in which people trade future claims on funds or goods.
Market for loanable funds
A market in which savers supply funds to those who want to bo…
9 terms
Macroeconomics Chapter 13
Aggregate demand and aggregate supply…
Aggregate demand (AD) curve
Short-run aggregate supply (SRAS) curve
Monetary policy
A model that explains short-run fluctuations in real GDP and…
A curve that shows the relationship between the price level a…
A curve that shows the relationship in the short run between…
The actions the Federal Reserve takes to manage the money sup…
Aggregate demand and aggregate supply…
A model that explains short-run fluctuations in real GDP and…
Aggregate demand (AD) curve
A curve that shows the relationship between the price level a…
26 terms
Chapter 13 Macroeconomics
fiscal policy (discretionary fiscal po…
discretionary
Council of Economic Advisers (CEA)
expansionary fiscal policy
changes in government spending/tax collections designed to ac…
controlled by Congress
a group of 3 persons that advises and assists the president o…
an increase in gov purchases, a decrease in net taxes, or som…
fiscal policy (discretionary fiscal po…
changes in government spending/tax collections designed to ac…
discretionary
controlled by Congress
Macroeconomics - Chapter 13
Functions of Money
money definition - M1... (for immediate u…
money definition - M2... (near-monies: ca…
money definition - M3
Medium of exchange: usable for buying & selling... Unit of accou…
Currency (coins & paper money)... Checkable deposits (C.D.)
Savings deposits, including money market deposit accounts... Sma…
Large time deposits (more than $100,000)... + M2
Functions of Money
Medium of exchange: usable for buying & selling... Unit of accou…
money definition - M1... (for immediate u…
Currency (coins & paper money)... Checkable deposits (C.D.)
16 terms
Macroeconomics Chapter 13
If there is perfect capital _________,…
Where does the demand for loanable fun…
Where does the supply for loanable fun…
Why might interest rate parity not nec…
If there is perfect capital mobility, there is a single world…
The purchases of new capital equipment by firms to produce go…
Combined savings of households and governments
• Risk: Higher risk leads to higher interest rate payment. ... •…
If there is perfect capital _________,…
If there is perfect capital mobility, there is a single world…
Where does the demand for loanable fun…
The purchases of new capital equipment by firms to produce go…
65 terms
Macroeconomics Chapter 13
aggregate demand-supply model
aggregate demand
aggregate supply
price level
use to study business models
total demand for final goods and services in economy... (spendin…
total supply of final goods/services in the economy
nominal variable that reflects current price changes without…
aggregate demand-supply model
use to study business models
aggregate demand
total demand for final goods and services in economy... (spendin…
82 terms
Macroeconomics Chapter 13 - 18
Budget Line
Relative Price
Utility
Total Utility
A line that describes the limits to consumption possibilities…
The price of one good in terms of another good-an opportunity…
The benefit or satisfaction that a person gets from the consu…
The total benefit that a person gets from the consumption of…
Budget Line
A line that describes the limits to consumption possibilities…
Relative Price
The price of one good in terms of another good-an opportunity…
50 terms
Macroeconomics Chapter 13
The federal government's largest sourc…
Social insurance programs are:
Government payments to households for…
Medicaid, Medicare, and Social Securit…
personal income and corporate profit taxes.
government programs intended to protect families against econ…
transfer payments.
transfer payments.
The federal government's largest sourc…
personal income and corporate profit taxes.
Social insurance programs are:
government programs intended to protect families against econ…
25 terms
AP Macroeconomics Chapter 13
medium of exchange
unit of account
store of value
M1, M2, M3
any items sellers generally accept and buyers generally use t…
a standard unit in which prices can be stated and the value o…
an asset set aside for future use; one of the three functions…
M1: the most narrowly defined money supply, equal to currency…
medium of exchange
any items sellers generally accept and buyers generally use t…
unit of account
a standard unit in which prices can be stated and the value o…
27 terms
Macroeconomics Chapter 13 Terms
monet
medium of exchange
commodity money
unit of account
anything that is generally accepted in exchange for goods and…
anything that facilitates trade by being generally accepted b…
Anything that serves both has money and as a commodity; money…
A common unit of measuring the value of each good or service
monet
anything that is generally accepted in exchange for goods and…
medium of exchange
anything that facilitates trade by being generally accepted b…
40 terms
CHAPTER 13 MACROECONOMICS
Fiscal Policy
Expansionary fiscal policy
Giving tax cuts is an example of
Investment tax credit
the use of taxes, government transfers, or purchases to shift…
increases aggregate demand... tax cuts... increase transfers... increa…
expansionary fiscal policy
a tax break given to firms based on their investment spending
Fiscal Policy
the use of taxes, government transfers, or purchases to shift…
Expansionary fiscal policy
increases aggregate demand... tax cuts... increase transfers... increa…
13 terms
Macroeconomics Chapter 13 Vocab
financial system
financial markets
bond
stock
the group of institutions in the economy that help to match o…
financial institutions through which savers can directly prov…
a certificate of indebtedness
a claim to partial ownership in a firm
financial system
the group of institutions in the economy that help to match o…
financial markets
financial institutions through which savers can directly prov…
16 terms
Macroeconomics-Chapter 13
Federal Open Market Committee (FOMC)
Intermediate Target
Equation of Exchange
Velocity of Money
The official policy-making body of the Federal Reserve System
An objective used to achieve some ultimate policy goal
An equation that relates the quantity of money to nominal GDP
The average number of times each dollar is spent on final goo…
Federal Open Market Committee (FOMC)
The official policy-making body of the Federal Reserve System
Intermediate Target
An objective used to achieve some ultimate policy goal
14 terms
Macroeconomics Chapter 13
Aggregate demand and supply model
Aggregate demand curve
Short-run aggregate supply curve
Monetary policy
model that explains short-run fluctuations in real GDP and th…
curve that shows the relationship between the price level and…
curve that shows the relationship in the short run between th…
actions the Federal Reserve takes to manage the money supply…
Aggregate demand and supply model
model that explains short-run fluctuations in real GDP and th…
Aggregate demand curve
curve that shows the relationship between the price level and…
13 terms
Macroeconomics Chapter 13 Notes
financial markets
bond
stock
financial intermediaries
financial institutions through which savers can directly prov…
a certificate of indebtedness. Instead of going to the bank t…
a claim to partial ownership in a firm
financial institutions through which savers can indirectly pr…
financial markets
financial institutions through which savers can directly prov…
bond
a certificate of indebtedness. Instead of going to the bank t…
36 terms
Macroeconomics Final - Chapter 13
The 3 Functions of Money
Medium of Exchange
Fiat Money
A Store of Value
1) Medium of Exchange... 2) A Store of Value... 3) A Unit of Account
Used to buy goods and services; it is more efficient to use m…
Money that has no intrinsic value
An asset that will allow people to transfer purchasing power…
The 3 Functions of Money
1) Medium of Exchange... 2) A Store of Value... 3) A Unit of Account
Medium of Exchange
Used to buy goods and services; it is more efficient to use m…
50 terms
Macroeconomics Chapter 13
The group of three economists appointe…
Discretionary fiscal policy refers to:
Countercyclical discretionary fiscal p…
Fiscal policy refers to the:
Council of Economic Advisers.
intentional changes in taxes and government expenditures made…
deficits during recessions and surpluses during periods of de…
deliberate changes in government spending and taxes to stabil…
The group of three economists appointe…
Council of Economic Advisers.
Discretionary fiscal policy refers to:
intentional changes in taxes and government expenditures made…
31 terms
Macroeconomics Chapter 13
Bond
Bond Finance
Budget Deficit
Budget Surplus
A certificate of indebtedness
A type of long-term borrowing that state and local government…
A shortfall of tax revenue from government spending
An excess of tax revenue over government spending
Bond
A certificate of indebtedness
Bond Finance
A type of long-term borrowing that state and local government…
17 terms
Macroeconomics Vocab Chapter 13
Fiscal policy
Council of Economic Advisers (CEA)
Expansionary fiscal policy
Budget deficit
Changes in government spending and tax collections designed t…
A group of three persons that advises and assists the preside…
An increase in government purchases of goods and services, a…
The amount by which the expenditures of the federal governmen…
Fiscal policy
Changes in government spending and tax collections designed t…
Council of Economic Advisers (CEA)
A group of three persons that advises and assists the preside…
27 terms
Macroeconomics Final Chapter 13
AD-AD Model
AD
AS
GDP
Short run fluctuations in real GDP and Price level
relationship between price level and quantity of real GDP dem…
relationship between price level and quantity of real GDP sup…
C+I+G+NX
AD-AD Model
Short run fluctuations in real GDP and Price level
AD
relationship between price level and quantity of real GDP dem…
47 terms
Intermediate Macroeconomics Chapter 13
Mundell- Fleming Model
Small open economy with perfect capita…
what does r= r* stand for
IS equation
the dominant policy for studying open economy monetary and fi…
r= r*
represents the assumption that international flow of capital…
Y= C ( Y-T) + I (r*) + G + NX (e)
Mundell- Fleming Model
the dominant policy for studying open economy monetary and fi…
Small open economy with perfect capita…
r= r*
11 terms
Macroeconomics Chapter 13
Expansion Phase (Business Cycle)
Peak (Business Cycle)
Contraction Phase (Business Cycle)
Trough (Business Cycle)
The period of time during which economic activity is increasi…
A turning point in the business cycle when the expansion phas…
The period of time during which economic activity is declinin…
A turning point in the business cycle when the contraction ph…
Expansion Phase (Business Cycle)
The period of time during which economic activity is increasi…
Peak (Business Cycle)
A turning point in the business cycle when the expansion phas…
18 terms
Macroeconomics - Chapter 13
Aggregate demand and aggregate supply…
Aggregate demand (AD) curve
Short-run aggregate supply (SRAS) curve
C + I + G + NX
A model that explains short-run fluctuations in real GDP and…
A curve that shows the relationship between the price level a…
A curve that shows the relationship in the short run between…
Y =
Aggregate demand and aggregate supply…
A model that explains short-run fluctuations in real GDP and…
Aggregate demand (AD) curve
A curve that shows the relationship between the price level a…
9 terms
Macroeconomics Chapter 13
aggregate supply
aggregate supply (AS) curve
cost shock or supply shock
equilibrium price level
the total supply of all goods and services in an economy
a graph that show the relationship between the aggregate quan…
a change in costs that shifts the short-run aggregate supply…
the price level at which the aggregate demand and aggregate s…
aggregate supply
the total supply of all goods and services in an economy
aggregate supply (AS) curve
a graph that show the relationship between the aggregate quan…
Chapter 13: Macroeconomics
Fiscal Policy
Council of Economic Advisors (CEA)
Expansionary Fiscal Policy
Budget Deficit
The means by which a government adjusts its spending levels a…
An agency within the Executive Office of the President that a…
Is designed to stimulate the economy during or anticipation o…
Refer to government spending rather than business or individu…
Fiscal Policy
The means by which a government adjusts its spending levels a…
Council of Economic Advisors (CEA)
An agency within the Executive Office of the President that a…
32 terms
Chapter 13 Macroeconomics
Business fluctuations
Recession
Dynamic Aggregate demand curve
The AD Curve
fluctuations in the growth rate of real GDP around its trend…
a significant, widespread decline in real income and employme…
shows all the combinations of inflation and real growth that…
gives combinations of inflation and real growth consistent wi…
Business fluctuations
fluctuations in the growth rate of real GDP around its trend…
Recession
a significant, widespread decline in real income and employme…
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