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Study sets matching "macroeconomics market"

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Study sets matching "macroeconomics market"

30 terms
Macroeconomics: Markets
Loanable funds market
Interest rate
Rate of return
Shifts in demand for loanable funds
The hypothetical market where savers and borrowers come toget…
The price that is determined in the loanable funds market
The profit earned on the project expressed as a percentage of…
1) just in perceived business opportunity, for example the In…
Loanable funds market
The hypothetical market where savers and borrowers come toget…
Interest rate
The price that is determined in the loanable funds market
14 terms
Chapter 17 Macroeconomics: Open-Market Macroeconomics Vocab
Balance of Trade
Trade Deficit
Trade Surplus
Foreign Direct Investment (FDI)
The value of exports minus the value of imports
A negative balance of trade; a greater amount of imports than…
A positive balance of trade; a greater amount of exports than…
Investment when a firm runs part of its operation abroad or i…
Balance of Trade
The value of exports minus the value of imports
Trade Deficit
A negative balance of trade; a greater amount of imports than…
20 terms
Macroeconomics - The Market for Loanable Funds
The Market for Loanable Funds
The market in which those who want to…
Savers
Investors
The market in which those who want to save supply funds and t…
What is the Market for Loanable Funds?
Supply comes from
Demand comes from
The Market for Loanable Funds
The market in which those who want to save supply funds and t…
The market in which those who want to…
What is the Market for Loanable Funds?
Macroeconomics: The Labor Market
Labor market
Noninstitutional civilian population
Out of the labor force
Participation rate
The market in which wages are determined.
The number of people potentially available for civilian emplo…
People who are neither working in the marketplace nor looking…
The ratio of the labor force to the noninstitutional civilian…
Labor market
The market in which wages are determined.
Noninstitutional civilian population
The number of people potentially available for civilian emplo…
18 terms
money market-AP macroeconomics
real interest rate
Dm shifters
M1
M2
nominal interest rate adjusted to inflation/deflation
1. incomes/GDP increase... 2. inflation (PL increases)... 3. less t…
currency and checkable deposits
M1 and short-term savings
real interest rate
nominal interest rate adjusted to inflation/deflation
Dm shifters
1. incomes/GDP increase... 2. inflation (PL increases)... 3. less t…
22 terms
Macroeconomics The Global Market
what is the goods and services that th…
what is the goods and services that th…
In 2009, the global exports and import…
the US accounts for ___ of the world i…
imports
exports
15, 27
10, 15
what is the goods and services that th…
imports
what is the goods and services that th…
exports
51 terms
Macroeconomics: Labor Market
Profit
Unemployment
Economic Growth
Inflation
Excess of sales revenue over production cost.
Whenever some people who want to work do not have jobs; relat…
Increase in real gdp over a LONG period of time; related to r…
Increase in the general level of prices over several time per…
Profit
Excess of sales revenue over production cost.
Unemployment
Whenever some people who want to work do not have jobs; relat…
51 terms
Macroeconomics: Labor Market
Profit
Unemployment
Economic Growth
Inflation
Excess of sales revenue over production cost.
Whenever some people who want to work do not have jobs; relat…
Increase in real gdp over a LONG period of time; related to r…
Increase in the general level of prices over several time per…
Profit
Excess of sales revenue over production cost.
Unemployment
Whenever some people who want to work do not have jobs; relat…
14 terms
Macroeconomics: Financial Markets and the Economy
Demand Curve for Money
Demand for Money
Face Value of a Bond
Financial Market
Curve that shows the quantity of money demanded at each inter…
The relationship between the quantity of money people want to…
The amount the issuer of bond will have to pay on the maturit…
Markets in which funds accumulated by one group are made avai…
Demand Curve for Money
Curve that shows the quantity of money demanded at each inter…
Demand for Money
The relationship between the quantity of money people want to…
22 terms
Macroeconomics CH 3: Demand, Supply, and Market Equilibrium
demand curve
law of demand
diminishing marginal utility
income effect
shows the various amounts of a product that consumers are wil…
other things equal, states the inverse relationship between p…
in any specific time period, each buyer of a product will der…
a lower price increases the purchasing power of a buyer's mon…
demand curve
shows the various amounts of a product that consumers are wil…
law of demand
other things equal, states the inverse relationship between p…
28 terms
Macroeconomics: Money and Markets
What is one problem that might commonl…
What might cause a change in the value…
Which of these scenarios involves comm…
Which is an example of a demand account?
Two people have different ideas about the value of an item.
a change in government regulations
(NOT) A girl writes a check to her friend for a stack of valu…
checking account
What is one problem that might commonl…
Two people have different ideas about the value of an item.
What might cause a change in the value…
a change in government regulations
18 terms
Macroeconomics Chapter 1: Intro Market System
economics
utility
resources
opportunity cost
the social science that examines how societies use scarce res…
happiness, satisfaction, ultimate goal
used to make goods and services
what you give up divided by what you get ... NECESSITY to make c…
economics
the social science that examines how societies use scarce res…
utility
happiness, satisfaction, ultimate goal
23 terms
Macroeconomics Final- Credit Markets
Debtors
Credit
Interest Rate
Real Interest Rate
people who borrow funds
the loans that the debtors recieve
the annual cost of borrowing one dollar
nominal interest rate minus the inflation rate
Debtors
people who borrow funds
Credit
the loans that the debtors recieve
14 terms
Open-Market Macroeconomics (Ch. 17)
balance of trade
trade deficit
trade surplus
foreign direct investment (FDI)
the value of exports minus the value of imports.
a negative balance of trade; a greater amount of imports than…
a positive balance of trade; a greater amount of exports than…
investment when a firm runs part of its operation abroad or i…
balance of trade
the value of exports minus the value of imports.
trade deficit
a negative balance of trade; a greater amount of imports than…
12 terms
chapter 4 MACROECONOMICS AND FINANCIAL MARKETS
Describe the difference between risk a…
Chevalier and Goolsbee (2009) suggests…
"S1. Rational expectations means agent…
"S2. Rational, forward-looking central…
Risk is where you know the possible outcomes... uncertainty is w…
Students would continue making systematic errors by purchasin…
True as per the definition of REH
tru because cb are rational forward looking agents because th…
Describe the difference between risk a…
Risk is where you know the possible outcomes... uncertainty is w…
Chevalier and Goolsbee (2009) suggests…
Students would continue making systematic errors by purchasin…
11 terms
chapter 5 MACROECONOMICS AND FINANCIAL MARKETS
Why do saver households not lend direc…
What happens to the money supply and t…
Why are loans to households and firms…
"The bank lending rate will increase t…
1. savers need access in short notice, while borrowers want t…
When confidence is boosted, the money demand curve will shift…
Credit risk - there is no guarantee that interest payments on…
true. The riskier the loans, the higher the banking mark up w…
Why do saver households not lend direc…
1. savers need access in short notice, while borrowers want t…
What happens to the money supply and t…
When confidence is boosted, the money demand curve will shift…
6 terms
chapter 1 MACROECONOMICS AND FINANCIAL MARKETS
What is the IS curve? Why does it slop…
y =[1/(1−c1)(1−t)] (c0 + I + G).... (a) I…
Use IS curve equation and discuss what…
According to the permanent income hypo…
IS curve is on the demand side. It is called the IS curve bec…
a) the multiplier is the part in brackets. As the MPC (c1) go…
a)IS shifts to the right by the change in autonomous consumpt…
a) under PIH, anticipated changes in income will have no effe…
What is the IS curve? Why does it slop…
IS curve is on the demand side. It is called the IS curve bec…
y =[1/(1−c1)(1−t)] (c0 + I + G).... (a) I…
a) the multiplier is the part in brackets. As the MPC (c1) go…
14 terms
Macroeconomics: CH2 The Market System
Economic System
Laissez-faire Capitalism
Command system
Market System
A particular set of institutional arrangements and a coordina…
Limited government interference.
Government owns modt property resources and economic decision…
Mixture of centralized government economic intitiatives and d…
Economic System
A particular set of institutional arrangements and a coordina…
Laissez-faire Capitalism
Limited government interference.
8 terms
chapter 3 MACROECONOMICS AND FINANCIAL MARKETS
Why is monetary > fiscal for stabiliza…
'If the economy has high but stable in…
What are the advantages and disadvanta…
Explain what is meant by the central b…
1)flexibility, no long govt process... 2)fiscal policy is politi…
With stable high inflation, people want to hold less money be…
for 0%: there is a cost of holding notes and coins with any p…
the central banks loss function captures the costs it incurs…
Why is monetary > fiscal for stabiliza…
1)flexibility, no long govt process... 2)fiscal policy is politi…
'If the economy has high but stable in…
With stable high inflation, people want to hold less money be…
11 terms
Macroeconomics Market System & Circular Flow
economic systems
Laissez-Faire Capitalism
The Command System
The Market System
Set of institutionalized arrangements, designed to ensure tha…
ideal economy " keep government from interfering with the e…
socialism or communism, government ownership of resources, de…
middle ground, market system, the market system is a mix of d…
economic systems
Set of institutionalized arrangements, designed to ensure tha…
Laissez-Faire Capitalism
ideal economy " keep government from interfering with the e…
21 terms
Chapter 18 Open Market Macroeconomics
Open Economy
Exports
Imports
Trade Surplus
Allows trade with the rest of the world. Also buys and sells…
Goods produced domestically and sold abroad
Goods produced abroad and sold domestically
Exports > Imports
Open Economy
Allows trade with the rest of the world. Also buys and sells…
Exports
Goods produced domestically and sold abroad
14 terms
Ch. 14- The Labor Market in Macroeconomics
Labor Force
Unemployment Rate
Frictional Unemployment
Structural Unemployment
The number of employed plus unemployed... LF= E+ U
The number of people unemployed as a percentage of the labor…
The portion of unemployment that is due to the normal working…
The portion of unemployment that is due to changes in the str…
Labor Force
The number of employed plus unemployed... LF= E+ U
Unemployment Rate
The number of people unemployed as a percentage of the labor…
10 terms
Macroeconomics: Market Forces of Supply and Demand
Market
Law of Demand
What does demand come from?
Things that shift the demand curve
Group of buyers and sellers of a particular product
Quantity demanded of good falls when price of good rises
The behavior of buyers
Number of Buyers... Income... Price of substitutes ... Price of comple…
Market
Group of buyers and sellers of a particular product
Law of Demand
Quantity demanded of good falls when price of good rises
19 terms
The Macroeconomic Market and National Economic Behavior
aggregate
wealth
short-run aggregate supply
expansionary phase
total
value of financial assets, different than income
total supply of goods and services made by firms within an ec…
current output increasing short-run economic growth
aggregate
total
wealth
value of financial assets, different than income
16 terms
Macroeconomics Demystified C6 The Money Market
Rate of Interest
Transaction Demand
Precautionary Demand
Price paid in the money market for the use of money (or loans…
Money demanded for day-to-day payments through balances held…
Money demanded as a result of unanticipated payments. Varies…
Rate of Interest
Price paid in the money market for the use of money (or loans…
Transaction Demand
Money demanded for day-to-day payments through balances held…
22 terms
Macroeconomics: Chapter 2 - The Market System and Economic System
Economic Systems
Differences in systems exist by...
Laissez-faire Capitalism: Ideal economy
The Command System
Has to determine what goods are produced, how they are, who g…
Vast majority lies in middle (market system) - United States…
No economy has ever employed this... - Hands off system... - Govern…
- Socialism or communism... - Government ownership of resources…
Economic Systems
Has to determine what goods are produced, how they are, who g…
Differences in systems exist by...
Vast majority lies in middle (market system) - United States…
33 terms
Macroeconomics Chapter 6: Credit Markets
Role of the credit market?
Three types of savers/borrowers:
Nominal Interest Rate:
Real Interest Rate:
channel funds from savers to spenders
Households, firms, governments
Nominal Interest Rate= [(payback-loan)/loan]*100
Real Interest rate= Nominal - Inflation Rate
Role of the credit market?
channel funds from savers to spenders
Three types of savers/borrowers:
Households, firms, governments
20 terms
Macroeconomics: Chapter 9/Loanable Funds Market
Loanable funds market
Financing
What does the loanable funds market in…
Savers
- The market where savers supply funds for loans to borrowers…
Funds obtained for their operations
- Stock exchanges... - Investment banks... - Mutual fund firms ... - C…
Households... Foreign entities (governments, firms, citizens) th…
Loanable funds market
- The market where savers supply funds for loans to borrowers…
Financing
Funds obtained for their operations
20 terms
Macroeconomics Ch.3 (Demand, Supply, & Market Equilibrium)
Product Markets
Factor Markets
Labor Market
Capitol Market
markets in which goods and services are exchanged
markets in which the resources used to produce goods and serv…
the input/factor market in which households supply work for w…
the input/factor market in which households supply their savi…
Product Markets
markets in which goods and services are exchanged
Factor Markets
markets in which the resources used to produce goods and serv…
20 terms
Macroeconomics: Chapter 3 - Demand, Supply, and Market Equilibrium
Markets
Markets can be...
Demand
Law of Demand
Brings together buyers and sellers
- Local... - National... - International
Amount consumers are willing and able to purchase at a given…
Other things constant, as price falls, the quantity demand ri…
Markets
Brings together buyers and sellers
Markets can be...
- Local... - National... - International
76 terms
AP Macroeconomics - Chapter 4: The Market System
Which of the following is not a charac…
Which of the following is a fundamenta…
Copyrights and trademarks are examples…
The pursuit of self-interest:... A) is h…
C
A
C
D
Which of the following is not a charac…
C
Which of the following is a fundamenta…
A
33 terms
Macroeconomics Week 4 - Labour market and unemployment
Unemployment rate
Employment rate
Participation rate
Natural rate of unemployment (NRU)
Unemployed / labor force
Employed / people in the working age
Labor force / population of working age
Rate of unemployment that stays in the long run ... Made up of…
Unemployment rate
Unemployed / labor force
Employment rate
Employed / people in the working age
19 terms
The Macroeconomic Market and National Economic Behavior
A change in output will change _______…
AD determinants
consumption (AD determinant)
investment (AD determinant)
unemployment; opposite ; employment; same
consumption... investment... government... net exports
wealth... income tax rates... consumer confidence... real interest rat…
business optimism/profitability/pessimism
A change in output will change _______…
unemployment; opposite ; employment; same
AD determinants
consumption... investment... government... net exports
37 terms
Macroeconomics Chapter 4 The Market Forces of Supply and Demand
What is a market?
What is competition
Characteristics of a perfectly competi…
Price Takers
A group of buyers and sellers of a particular good or service…
Definition of competitive market: a market in which there are…
The goods being offered for sale are exactly the same. The bu…
Buyers and sellers must accept the market price as given
What is a market?
A group of buyers and sellers of a particular good or service…
What is competition
Definition of competitive market: a market in which there are…
16 terms
Macroeconomics - AD & AS Supply in the Market Economy
What is aggregate demand?
What are the components of aggregate d…
What is consumer expenditure (C)?
What is investment spending (I)?
This is the total amount that all consumers, businesses, firm…
Aggregate Demand = C + I + G + (X - IM)... Where C = consumer ex…
This is the total amount spent by consumers on newly produced…
This is the sum of expenditure of business firms on new plant…
What is aggregate demand?
This is the total amount that all consumers, businesses, firm…
What are the components of aggregate d…
Aggregate Demand = C + I + G + (X - IM)... Where C = consumer ex…
20 terms
Macroeconomics Chapter 4: Market Forces of Supply/Demand
Market
Who determines the demand in a market?
Competitive Market
Perfectly Competitive Market
buyers/sellers meet to trade
buyers
most common, large number of buyers and sellers, hard (but po…
almost impossible, no buyer/seller has influence over market…
Market
buyers/sellers meet to trade
Who determines the demand in a market?
buyers
15 terms
AP Macroeconomics - Unit 3 - The Macroeconomic Market & National Economic Behavior
AD Determinants
SRAS Determinants
Unemployment moves in the _______ dire…
Employment moves in the ________ direc…
consumption, investment, government, net exports
input costs, technology, worker productivity, supply shocks
opposite
same
AD Determinants
consumption, investment, government, net exports
SRAS Determinants
input costs, technology, worker productivity, supply shocks
13 terms
Macro: introduction to basic macroeconomic markets
Aggregate demand
Key
Increases
less, more
The sum of all demand for goods and services in all markets i…
Resource market, loanable funds market, foreign exchange mark…
If price decreases, what happens to the purchasing power of t…
When domestic prices decrease we buy ______ foreign goods and…
Aggregate demand
The sum of all demand for goods and services in all markets i…
Key
Resource market, loanable funds market, foreign exchange mark…
19 terms
AP Macroeconomics -- Chapter 9 -- An Introduction to Basic Macroeconomic Markets -- Vocabulary
Fiscal Policy
Monetary Policy
Money Supply
Resource Market
The use of government taxation and expenditure policies for t…
The deliberate control of the money supply, and, in some case…
The supply of currency, checking account funds, and traveler'…
A highly aggregated market encompassing all resources (labor,…
Fiscal Policy
The use of government taxation and expenditure policies for t…
Monetary Policy
The deliberate control of the money supply, and, in some case…
16 terms
Macroeconomics Chapter 24 Market for Foreign Exchange
Market for foreign exchange has a
Nominal exchange rate
Appreciated
Depreciated
price, a demand, and supply
Price in this market.... Rate at which 2 currencies trade for ea…
Currency that increases in exchange value relative to another…
Currency that loses value relative to other currencies
Market for foreign exchange has a
price, a demand, and supply
Nominal exchange rate
Price in this market.... Rate at which 2 currencies trade for ea…
31 terms
Macroeconomics: CH3 Demand, Supply, and Market Equilibrium
Demand
Demand Schedule
Law of Demand
Diminishing Marginal Utility
Schedule or a curve that shows the various amount of product…
Table form for Demand
Negative or inverse relationship between price and quantity.…
Less satisfaction from each successive unit of the product co…
Demand
Schedule or a curve that shows the various amount of product…
Demand Schedule
Table form for Demand
23 terms
AP Macroeconomics Ch. 4 Market System Vocab
private property
freedom of enterprise
freedom of choice
self-interest
right of private persons and firms to obtain, own, control, e…
freedom of firms to obtain economic resources, to use those r…
freedom of owners of property resources to employ or dispose…
that which each firm, property owner, worker, and consumer be…
private property
right of private persons and firms to obtain, own, control, e…
freedom of enterprise
freedom of firms to obtain economic resources, to use those r…
24 terms
Macroeconomics - Ch. 3: Demand, Supply, & Market Equilibrium
market
quantity demanded
Law of Demand
demand schedule
a group of buyers and sellers of a particular good or service
the amount of a good that buyers are willing and able to purc…
states that, other things equal, the quantity demanded of a g…
a table that shows the relationship between the price of the…
market
a group of buyers and sellers of a particular good or service
quantity demanded
the amount of a good that buyers are willing and able to purc…
15 terms
AP Micro/Macroeconomics Market Structures Part I
Price takers
Competitive market
Shut down point
Exit
Buyers and sellers in a competitive market that must accept t…
A market with many buyers and sellers trading identical produ…
A short run decision to temporarily cease production during a…
A long-run decision to permanently cease production and leave…
Price takers
Buyers and sellers in a competitive market that must accept t…
Competitive market
A market with many buyers and sellers trading identical produ…
36 terms
ECO 202: Chapter 18 (Open Market Macroeconomics)
closed economy
GDP equation for open economy
what are the three possible outcomes f…
national savings equation
does not interact with other economies in the world, no expor…
GDP = C + I + G + NX
1. balanced trade (exports=imports, net exports=0, Y=C+I+G, s…
income of the nation that is left after paying for current co…
closed economy
does not interact with other economies in the world, no expor…
GDP equation for open economy
GDP = C + I + G + NX
30 terms
Macroeconomics chapter 3: Demand, Supply, and Market Equilibrium
Demand
Demand schedule
Law of demand
Diminishing marginal utility
A schedule or a curve that shows the various amounts of a pro…
Demand shown in table form
All else equal, as price falls, the quantity demanded rises,…
In any specific time period, each buyer of a product will der…
Demand
A schedule or a curve that shows the various amounts of a pro…
Demand schedule
Demand shown in table form
31 terms
Macroeconomics Module II:The Market Model and Efficiency
Ceteris Paribus
Law of Supply
Law of Demand
Determinants of Supply
The requirement that when analyzing the relationship between…
The rule that, holding everything else constant, increases in…
The rule that, holding everything else constant, when the pri…
prices of inputs(-), technological change(+), prices of relat…
Ceteris Paribus
The requirement that when analyzing the relationship between…
Law of Supply
The rule that, holding everything else constant, increases in…
13 terms
Macroeconomics Test 2 "Market for Loanable Funds"
Savers _________ money for ___________
Borrowers demand ________ from ________
There is an __________ relationship b/…
Interest Rates are the ___________ of…
supply, borrowers
money, savers
inverse
proportion ... borrower
Savers _________ money for ___________
supply, borrowers
Borrowers demand ________ from ________
money, savers
23 terms
Macroeconomics - Chapter 4 - Demand, Supply, and Market Equilibrium
perfectly competitive market
quantity demanded
demand schedule
individual demand curve
a market with many sellers and buyers of a homogenous product…
the amount of a product that consumers are willing and able t…
a table that shows the relationship between the price of a pr…
a curve that shows the relationship between the price of a go…
perfectly competitive market
a market with many sellers and buyers of a homogenous product…
quantity demanded
the amount of a product that consumers are willing and able t…
46 terms
Macroeconomics Ch.2 - The Market System and the Circular Flow
Economic System
The Command System
The Market System
Markets
A particular set of institutional arrangements and a coordina…
Also known as socialism or communism...A central planning boa…
Also known as capitalism...private ownership of resources and…
Places where buyers and sellers come together to buy and sell…
Economic System
A particular set of institutional arrangements and a coordina…
The Command System
Also known as socialism or communism...A central planning boa…
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