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Study sets matching "macroeconomics"

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Study sets matching "macroeconomics"

75 terms
Macroeconomics
'The shoe-leather cost of inflation is…
'Since higher consumption means lower…
'IN the AK model of economic growth th…
`In a closed economy, the aggregate de…
False. The shoe-leather cost of inflation refers to the costs…
False. Taking income as given, it is the case that consumptio…
True. The AK model of economic growth is identical to the Sol…
False. There is no reason in general why the nominal value of…
'The shoe-leather cost of inflation is…
False. The shoe-leather cost of inflation refers to the costs…
'Since higher consumption means lower…
False. Taking income as given, it is the case that consumptio…
14 terms
Macroeconomics
Gross Domestic Product
Business Cycle
economic expansion
economic recession
The value of the total output of goods and services produced…
Alternating periods of economic expansion and economic recess…
the situation that occurs when an economy is growing and peop…
A moderate but sustained downturn in the economy. Recessions…
Gross Domestic Product
The value of the total output of goods and services produced…
Business Cycle
Alternating periods of economic expansion and economic recess…
302 terms
Macroeconomics
What are the government's economic obj…
What are the two categories of economi…
How is short-run economic growth repre…
How is long-run economic growth repres…
- economic growth - improve standard of living... - price stabil…
Long-run and short-run
A shifting out of a point within the curve onto the PPF
The shifting out of the entire PPF
What are the government's economic obj…
- economic growth - improve standard of living... - price stabil…
What are the two categories of economi…
Long-run and short-run
Macroeconomics
Circular flow of income model
Leakages
Economic Growth (Macroeconomic Objecti…
Employment (Macroeconomic Objective)
Shows the relationship between households and firms
outflow of income from the circular flow of income model
A steady rate of increase of national output
A low level of unemployment
Circular flow of income model
Shows the relationship between households and firms
Leakages
outflow of income from the circular flow of income model
74 terms
Macroeconomics
Ability-to-Pay
Benefits-Received
Budget Deficit
Budget Surplus
The belief that people should be taxed according to their abi…
A concept of tax fairness that states that people should pay…
A situation in which the government spends more than it takes…
A situation in which the government takes in more than it spe…
Ability-to-Pay
The belief that people should be taxed according to their abi…
Benefits-Received
A concept of tax fairness that states that people should pay…
16 terms
Macroeconomics
Depreciation
Appreciation
Fx Quotation
Fx Rate
A decrease in the value of a currency
An increase in the value of a currency
A statement of willingness to buy or sell at an announced rate
Price of one currency expressed in terms of another currency
Depreciation
A decrease in the value of a currency
Appreciation
An increase in the value of a currency
63 terms
Macroeconomics
Anti-federalists
arbitration
bank
bartering
Those who advocated the use of a Bill of Rights for the ratif…
A third party helps two people resolve their conflict by offe…
A business that holds liquid assets, such as money
Exchanging products or services with others by agreeing on th…
Anti-federalists
Those who advocated the use of a Bill of Rights for the ratif…
arbitration
A third party helps two people resolve their conflict by offe…
20 terms
Macroeconomics
Board of Governors of the FED
Currency
Deflation
Demand Deposit
governing body of the FED
coins and paper money
decrease in the price level, or average price of goods
account from which funds can be withdrawn immediately when re…
Board of Governors of the FED
governing body of the FED
Currency
coins and paper money
46 terms
Macroeconomics
TFP Total Factor productivity
Main focus points
Expalin
Circular flow model
Also known as the A in the production function. Y=AKL... (A)-pro…
-gdp... -unemployment ... -inflation
Deficit information like Robert Erich
The product market and the resource market
TFP Total Factor productivity
Also known as the A in the production function. Y=AKL... (A)-pro…
Main focus points
-gdp... -unemployment ... -inflation
104 terms
Macroeconomics
major macro outcomes
major macro determinates
Long-run AS
Say's Law
output, prices, jobs, and international balances.
internal market forces, external shocks, and policy levers
is vertical at the "natural" rate of output.
supply creates its own demand/Self-Regulating Economy, Classi…
major macro outcomes
output, prices, jobs, and international balances.
major macro determinates
internal market forces, external shocks, and policy levers
44 terms
Macroeconomics
Gross Domestic Product
Market Value
Final Good
Intermediate Good
Market value of the final goods and services produced in a co…
The price at which items are traded in markets
Item bought by its final user during a specific time period
Item that is used to produce a final good or service
Gross Domestic Product
Market value of the final goods and services produced in a co…
Market Value
The price at which items are traded in markets
98 terms
Macroeconomics
Terms
Economics
Economic system
Microeconomics
Begin with a definition: 3 sentences... 1. Narrow understanding/…
A branch of knowledge that studies how societies produce and…
An economic system is made up of the laws, customs, instituti…
Focus= EFFICIENCY; studies economic production/distribution r…
Terms
Begin with a definition: 3 sentences... 1. Narrow understanding/…
Economics
A branch of knowledge that studies how societies produce and…
80 terms
Macroeconomics
AD - Aggregate demand
AD - Demand side shock
AD - AD decrease factors
AD - AD increase factors
the proposed spending on all final goods & services in an eco…
shift in demand curve
1. slow down in world economy 2. loss of consumer and busines…
1. growth in exports 2. interest rate and taxes fall 3. incre…
AD - Aggregate demand
the proposed spending on all final goods & services in an eco…
AD - Demand side shock
shift in demand curve
110 terms
Macroeconomics
The Circular Flow Diagram
Firm
Household
Markets for goods an services
is an organization that produces goods and services for sale.
is a person or group of persons that share their income.
Firms that sell goods and services to households.
The Circular Flow Diagram
Firm
is an organization that produces goods and services for sale.
104 terms
Macroeconomics
major macro outcomes
major macro determinates
Long-run AS
Say's Law
output, prices, jobs, and international balances.
internal market forces, external shocks, and policy levers
is vertical at the "natural" rate of output.
supply creates its own demand/Self-Regulating Economy, Classi…
major macro outcomes
output, prices, jobs, and international balances.
major macro determinates
internal market forces, external shocks, and policy levers
79 terms
Macroeconomics
Non-market
Final output
output
Intermediate output
No buying or selling
output that does not go through any further manufacturing/pro…
same as income
goes through further manufacturing/processing/reselling
Non-market
No buying or selling
Final output
output that does not go through any further manufacturing/pro…
196 terms
Macroeconomics
Aggregate
Aggregate demand
Aggregate supply
Supply side
means "all" or "whole"
means all goods and services wanted by people in that country.
means all goods and services produced.
Shift the Aggregate supply curve
Aggregate
means "all" or "whole"
Aggregate demand
means all goods and services wanted by people in that country.
57 terms
Macroeconomics
Shift of labor demand curve - benefici…
Real wage rate
The production function (graph)
The production function
Shift of labor demand curve - benefici…
Real wage rate
19 terms
Macroeconomics
Macroeconomics
Gross Domestic Product
economic growth
unemployment
study of the economy as a whole (national, global)
the dollar amount of all final goods and services produced wi…
increase in the total output of an economy. occurs when a soc…
people looking for work, but who are without jobs.
Macroeconomics
study of the economy as a whole (national, global)
Gross Domestic Product
the dollar amount of all final goods and services produced wi…
38 terms
Macroeconomics
Gross Domestic Product
Net National Product
inflationary period
recessionary phase
the total output of final goods and services produced during…
Measures total output of all goods and services produced worl…
purchasing power of money declines
potential national income exceeds actual national income as a…
Gross Domestic Product
the total output of final goods and services produced during…
Net National Product
Measures total output of all goods and services produced worl…
32 terms
Macroeconomics
Macroeconomics
Real rate of interest
Employment Act of 1946
Unemployment
Concentrates on the operation of a nation's economy as a whole.
Interest rate minus inflation
Enacted by Truman, it committed the federal government to ens…
the state of being unemployed or not having a job
Macroeconomics
Concentrates on the operation of a nation's economy as a whole.
Real rate of interest
Interest rate minus inflation
47 terms
Macroeconomics
Transfer payments
optimal decision
quantity demanded
what happens as price of item rises?
sums of money that individuals receive as grants from the gov…
chooses the most desirable alt. among the possibilities permi…
number of units of a good that consumers are willing and can…
quantity demanded falls. as price falls, quantity demanded ri…
Transfer payments
sums of money that individuals receive as grants from the gov…
optimal decision
chooses the most desirable alt. among the possibilities permi…
35 terms
Macroeconomics
gross domestic policy
net exports
inflation
consumer price index
the market value of all final goods and services produced in…
exports - imports; Xn or Xm in the GDP formula
a rise in the general or average price level of all goods and…
measure of the average change over time in the prices paid by…
gross domestic policy
the market value of all final goods and services produced in…
net exports
exports - imports; Xn or Xm in the GDP formula
58 terms
Macroeconomics
fiscal policy
national debt
federal budget
crowding-out effect
the government's use of spending and taxes to make the econom…
the total amount of money the federal government owes to all…
a written document that estimates how much money the federal…
the loss of funds for private investment that are caused by g…
fiscal policy
the government's use of spending and taxes to make the econom…
national debt
the total amount of money the federal government owes to all…
56 terms
Macroeconomics
Gross Domestic Product
Real GDP
Nominal GDP
Microeconomics
The total value of goods and services produced within the bor…
the total value of all final goods and services produced in t…
the production of goods and services valued at current prices
Study of individual consumers and businesses.
Gross Domestic Product
The total value of goods and services produced within the bor…
Real GDP
the total value of all final goods and services produced in t…
23 terms
Macroeconomics
Lawrence is a photographer. He has $23…
A typical society strives to get the m…
For which of the following individuals…
Circular-Diagram
people face trade-offs.
efficiency and equality.
a famous, highly-paid actor who wants to take time away from…
Lawrence is a photographer. He has $23…
people face trade-offs.
A typical society strives to get the m…
efficiency and equality.
19 terms
Macroeconomics
Goods and Services
Five Factors of Production
Top-Down Approach
Bottom-Up Approach
The objects people value and produce to satisfy human wants.…
Land - Land earns rent... Labor - Labor earns wages... Capital (Hum…
An aggregate view of data in an economy, without sound or str…
Start from micro deals of the economy, decision problems, res…
Goods and Services
The objects people value and produce to satisfy human wants.…
Five Factors of Production
Land - Land earns rent... Labor - Labor earns wages... Capital (Hum…
158 terms
Macroeconomics
Scarcity
Economics
Microeconomics
Macroeconomics
Refers to the limited nature of society's resources, given so…
Is the study of how people allocate their limited resources t…
Is the study of the individual units that make up the economy
Is the study of the overall aspects and working of an economy
Scarcity
Refers to the limited nature of society's resources, given so…
Economics
Is the study of how people allocate their limited resources t…
20 terms
Macroeconomics
Fiscal Policy
Expansionary fiscal policy
Contractionary fiscal policy
Budget deficit
When the Federal government uses taxation and spending action…
If Congress passes legislation to increase government spendin…
If the U.S. Congress passes legislation to raise taxes to con…
The economy starts out with a balanced Federal budget. If the…
Fiscal Policy
When the Federal government uses taxation and spending action…
Expansionary fiscal policy
If Congress passes legislation to increase government spendin…
50 terms
Macroeconomics
Assume that a manufacturer of stereo s…
Net exports are
The agency responsible for compiling t…
GDP can be calculated by summing:
$30
exports less imports
Bureau of Economic Analysis
investment, government purchases, consumption, and net exports.
Assume that a manufacturer of stereo s…
$30
Net exports are
exports less imports
34 terms
Macroeconomics
Economic growth
Capital
Human Capital
entrepreneurs
increase in the Real GDP in a time period, Increase in the Re…
wealth in the form of money or property owned by a person or…
the skills and knowledge gained by a worker through education…
individuals who start new businesses, introduce new products,…
Economic growth
increase in the Real GDP in a time period, Increase in the Re…
Capital
wealth in the form of money or property owned by a person or…
28 terms
Macroeconomics
Macroeconomics
gross domestic product (GDP)
consumer price index (CPI)
Inflation
The study of the economy as a whole.
the dollar value of all final goods and services produced wit…
a measure of the overall cost of the goods and services bough…
rise in the general level of prices.
Macroeconomics
The study of the economy as a whole.
gross domestic product (GDP)
the dollar value of all final goods and services produced wit…
73 terms
Macroeconomics
Which question is a basic question eco…
Match each core idea of economic think…
What is a factor of production ?
What is true regarding human capital?
For whom are goods and services produced?
Benefit - What is gained when a person gets something... ... Ratio…
Land (land, labor, capitol, enterprise)
Human capital affects the quality and productivity of labor.
Which question is a basic question eco…
For whom are goods and services produced?
Match each core idea of economic think…
Benefit - What is gained when a person gets something... ... Ratio…
32 terms
Macroeconomics
scarcity
economics
efficiency
equality
the limited nature of society's resources
the study of how society manages its scarce resources
the property of society getting the most it can from the scar…
the property of distributing economic prosperity uniformly am…
scarcity
the limited nature of society's resources
economics
the study of how society manages its scarce resources
30 terms
macroeconomics
depreciation
business cycle
aggregate demand
investment
the wearing out of capital goods, also called capital consump…
the periodic fluctuation of national output around its long-t…
the sum total of all goods and services produced in an econom…
the purchase of new buildings, new plant, new vehicles, new m…
depreciation
the wearing out of capital goods, also called capital consump…
business cycle
the periodic fluctuation of national output around its long-t…
42 terms
macroeconomics
Medium of exchange
Unit of account
Store of value
money allows an economy to function efficiently. ... *Used to bu…
money provides a consistent way to value business activity so…
money allows for a person to amass wealth without having to k…
Medium of exchange
money allows an economy to function efficiently. ... *Used to bu…
Unit of account
money provides a consistent way to value business activity so…
58 terms
Macroeconomics
Social insurance, inheritance, corpora…
Property, licenses, ad valorem, sales…
Personal income, business income, user…
Excise tax
Only federal taxes
Only state taxes
Both state and federal taxes
a tax on the production or sale of a good
Social insurance, inheritance, corpora…
Only federal taxes
Property, licenses, ad valorem, sales…
Only state taxes
241 terms
Macroeconomics
Microeconomics
Macroeconomics
income must equal... expenditure because
Circular flow diagram
The study of individual household and firm behaviour,... individ…
The study of aggregate behaviour at the country or... world level
- Every transaction has a buyer and a seller.... - Every pound o…
Microeconomics
The study of individual household and firm behaviour,... individ…
Macroeconomics
The study of aggregate behaviour at the country or... world level
44 terms
Macroeconomics
Gross Domestic Product
Market Value
Final Good
Intermediate Good
Market value of the final goods and services produced in a co…
The price at which items are traded in markets
Item bought by its final user during a specific time period
Item that is used to produce a final good or service
Gross Domestic Product
Market value of the final goods and services produced in a co…
Market Value
The price at which items are traded in markets
143 terms
Macroeconomics
Chapter 2
Know this for test
When the economy is operating smoothly.
Supply (Defines: Potential GDP, Capaci…
Memorize This
Real GDP - -1.6% (1-3%)... Unemployment Rate - 7% (6-7%)... Rate of…
Output - High... Employment - High... Inflation Rate - Low... Special…
Capital Equipment... Labor... Management... Incentives of Gain... Incenti…
Chapter 2
Memorize This
Know this for test
Real GDP - -1.6% (1-3%)... Unemployment Rate - 7% (6-7%)... Rate of…
31 terms
Macroeconomics
First Econ Principle
Second Econ Principle
Third Econ Principle
Fourth Econ Principle
People Face Tradeoffs
The Cost of Something Is What You Give Up to Get It
Rational People Think at The Margin
People Respond To Incentives
First Econ Principle
People Face Tradeoffs
Second Econ Principle
The Cost of Something Is What You Give Up to Get It
63 terms
Macroeconomics
Economics
Scarcity
Opportunity Costs
Utility
The social science concerned with how individuals, institutio…
The essence or focus of economics. ( Can't have it all, we mu…
What we give up. To obtain more than one thing we must give u…
Satisfactions, pleasures, happiness from consuming a good or…
Economics
The social science concerned with how individuals, institutio…
Scarcity
The essence or focus of economics. ( Can't have it all, we mu…
53 terms
Macroeconomics
opportunity cost
resource
scarce
marginal analysis
the loss of potential gain from other alternatives when one a…
anything that can be used to produce something else, includes…
when the quantity available of a resource is not large enough…
deciding whether it is worthwhile to to a bit more or less of…
opportunity cost
the loss of potential gain from other alternatives when one a…
resource
anything that can be used to produce something else, includes…
466 terms
Macroeconomics
(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…
80 terms
Macroeconomics
AD - Aggregate demand
AD - Demand side shock
AD - AD decrease factors
AD - AD increase factors
the proposed spending on all final goods & services in an eco…
shift in demand curve
1. slow down in world economy 2. loss of consumer and busines…
1. growth in exports 2. interest rate and taxes fall 3. incre…
AD - Aggregate demand
the proposed spending on all final goods & services in an eco…
AD - Demand side shock
shift in demand curve
12 terms
macroeconomics
macroeconomics
GDP
Market Basket
Fictional unemployment
The study of the economy as a whole
the total market value of all final goods and services produc…
a representative collection of goods and services
People who voluntarily leave their job. Or they are looking f…
macroeconomics
The study of the economy as a whole
GDP
the total market value of all final goods and services produc…
12 terms
Macroeconomics
Macroeconomics
Gross Domestic Product
market basket
fictional unemployment
The study of the economy as a whole
Value of the total number of goods and services produced in a…
a representative collection of goods and services
is unemployment that comes from people moving between jobs an…
Macroeconomics
The study of the economy as a whole
Gross Domestic Product
Value of the total number of goods and services produced in a…
Macroeconomics
Macroeconomics
Gross Domestic Product
Market Basket
Fictional Unemployment
the study of the behavior and decision making of entire econo…
The total value of goods and services produced within the bor…
a representative collection of goods and services
People who voluntarily leave their job. Or they are looking f…
Macroeconomics
the study of the behavior and decision making of entire econo…
Gross Domestic Product
The total value of goods and services produced within the bor…
60 terms
macroeconomics
macroeconomics
economic goals
Gross Domestic product (GDP)
Intermediate Goods
study of the large economy as a whole... 1. Measure health of ec…
1. promote economic growth... 2. limit unemployment... 3. keep pric…
the dollar value of all final goods and services produced wit…
goods inside final goods that don't count
macroeconomics
study of the large economy as a whole... 1. Measure health of ec…
economic goals
1. promote economic growth... 2. limit unemployment... 3. keep pric…
42 terms
Macroeconomics
macroeconomics
circular flow
GDP, unemployment rates, and inflation
employment
the overall economy as a whole, looks at decision-making, per…
the basic economic model that macroeconomists use to explain…
what macroeconomics use to measure the economy
refers to people who have jobs
macroeconomics
the overall economy as a whole, looks at decision-making, per…
circular flow
the basic economic model that macroeconomists use to explain…
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