Term
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Definition
| The market value of all final good and services provided in a country during a period of time. |
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Term
| Consumption, Investments, Government Purchases, and Net Exports |
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Definition
| The four components fo GDP |
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Term
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Definition
| GDP evaluated at base year prices; Better over time. |
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Term
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Definition
| GDP evaluated at current year prices |
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Term
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Definition
| arising from the process of matching workers with jobs incorrectly |
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Term
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Definition
| Happens from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs |
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Term
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Definition
| Happens when a business cycle recession (economy is sick) |
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Term
| Natural Rate of Unemployment |
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Definition
| Structual unemployment plus frictional; not everyone has a job, but economists believe that to be normal |
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Term
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Definition
| the average prices of goods and services |
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Term
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Definition
| a percentage increase in the price level from one year to the next |
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Term
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Definition
| an average of the prices of the goods and services purchases by the typical urban family of four |
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Term
| How to calculate CPI for 2007 |
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Definition
| (Expenditures to buy mkt basket in 2007) / (Expenditures to buy mkt basket in base period) x100 |
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Term
| Calculating Inflation Rate for 2007 |
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Definition
| ((CPI2007 - CPI2006) / (CPI2006)) X 100 |
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Term
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Definition
| the stated interest rate on a loan |
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Term
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Definition
| the nominal interest rate minus the inflation rate. |
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Term
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Definition
| Number of years to double=(70/Growth Rate) |
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Term
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Definition
| the quantity of goods and services that can be produced by one worker or by one hour of work |
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Term
| Quantity of capital per hour, and technological changes |
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Definition
| Key factors to labor productivity |
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Term
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Definition
| the system of financial markets and banks through which firms acquire funds from households |
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Term
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Definition
| Private Savings equals... |
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Term
| Taxes - Government Purchases - Transfer Payments |
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Definition
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Term
| Market for Loanable Funds |
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Definition
| the interaction of borrowers and lenders that determines the market interest rate andthe quantity of ___ ____ exchanged. |
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Term
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Definition
| Who supplies loanable funds? |
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Term
| Expansion, Peak, Recession, Trough |
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Definition
| Four phases of the business cycle in order. |
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Term
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Definition
| model explains changes in real GDP per capita in the long run |
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Term
| Per-Worker Production Function |
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Definition
| relationship between real GDP or output, per hour worked and capital per hour worked (holding technology constant) |
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Term
| Law of Diminishing Returns |
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Definition
| as we add more of one input to a fixed quantity of another input, output increases by smaller additional amounts |
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Term
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Definition
| a long term ____ _____ that emphasizes that technological change is influenced by economic incentives and so determines the working the market system |
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Term
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Definition
| is when firms engage in research and development or otherwise contribute to technological change |
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Term
| if either the price level or the quantity of goods and services produced rises |
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Definition
| Nominal GDP will increase... |
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