Term
| nominal variables/real variables |
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Definition
| measured in real units/physical units |
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Term
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Definition
| separation of nominal and real variables |
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Term
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Definition
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Term
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Definition
| the quantity of goods and services produced from each unit of labor |
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Term
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Definition
| the stock of equipment and structures that are used to produce goods and services |
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Term
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Definition
| the inputs into production of goods and services that are provided by nature, such as land, rives, and mineral deposits |
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Definition
| the knowledge and skills that workers acquire through education, training, and experience |
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Term
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Definition
| society's understanding of the best ways to produce goods and services |
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Term
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Definition
| people's ability to exercise authority over resources they own |
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Term
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Definition
| attempt to increase productivity and living standards within the country by avoiding interaction with the rest of the world |
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Term
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Definition
| international trade in goods and services can improve the economic well-being of a country's citizes |
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Term
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Definition
| measure of overall cost of goods and services bought by a typical customer - used to monitor changes in the COL over time |
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Term
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Definition
| percentage change in the price level from previous period, CPI is measured by the bureau of labor statistics |
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Term
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Definition
| a measure of the cost of a basket of goods and services bought by firms |
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Term
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Definition
| the automatic correction by law or contract of a dollar amount for the effects of inflation |
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Term
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Definition
| financial institutions through which savers can indirectly provide funds to borrows |
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Term
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Definition
| an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds |
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Term
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Definition
| the total income in the economy that remains after paying for consumption and government purchases |
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Term
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Definition
| the income that households have left after paying for taxes and consumption |
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Term
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Definition
| the tax revenue that the government has left after paying for its spending |
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Term
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Definition
| an excess of tax revenue over government spending |
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Term
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Definition
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Term
| the market for loanable funds |
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Definition
| the market in which those who want to save supply funds, and those who want to borrow to invest demand funds |
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Term
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Definition
| spending by households on goods and services with the exception of purchases of new housing |
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Term
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Definition
| spending on capital equipment, inventories, and structures, including household purchases of new housing |
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Term
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Definition
| spending on goods and services by local, state, and federal governments |
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Term
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Definition
| spending on domestically produced goods by foreigners minus spending on foreign goods by domestic residents |
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Term
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Definition
| a certificate of indebtness that specifies the obligations of the borrower to te holder of the bond (date of maturity = date the loan will be repaid, principal = amount borrowed) |
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Term
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Definition
| a claim to partial ownership of a firm |
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Term
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Definition
| total income earned by nation's permanent residents, includes some citizens earn abroad and excludes income foreigners earn here |
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Term
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Definition
| gnp minus losses from depreciation |
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Term
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Definition
| earned by households and noncorp businesses. excludes retained earnings. |
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Term
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Definition
| total earned in the production of goods and services. excludes indirect business tax (sales tax) and includes subsidies. |
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Term
| disposable personal income |
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Definition
| personal income left after satisfying all obligations to the government |
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Term
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Definition
| the study of a company's accounting statements and future prospects to determine its value |
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Term
| efficient market hypothesis |
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Definition
| the theory that asset prices reflect all publicly available info about the value of the asset |
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Term
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Definition
| the path of a variable whose changes are impossible to predict |
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Term
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Definition
| the description of asset prices that rationally reflect all available info |
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Term
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Definition
| skills in demand do not match those of the unemployed and the unemployed do not live where the jobs are |
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Term
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Definition
| fluctuates with the business cycle, more during contractions and decreasing during expansions |
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Term
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Definition
| employment level when there is no cyclical emplyoment |
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Term
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Definition
| workers are overqualified for their jobs or work fewer hours than they would prefer |
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Term
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Definition
| cash transfers for those who lose their jobs and actively seek employment |
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Term
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Definition
| full and part time workers |
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Term
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Definition
| those who are not employed, were available for work, and have tried to find employment during the previous month |
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Term
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Definition
| those who fit neither employed or unemployed categories. students, home-makers, retirees. |
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Term
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Definition
| a government program that partially protects worker's income when they become unemployed |
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Term
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Definition
| a group of workers who organize their terms of employment, wages, benefits, and work conditions |
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Term
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Definition
| a union whose members have a particular skill or craft, such as plumbers or carpenters |
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Term
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Definition
| a union of both skilled and unskilled workers from a particular industry, automakers or steelworkers |
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Term
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Definition
| the process by which union and management negotiate a labor agreement |
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Term
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Definition
| an impartial observer who helps resolve differences between union and management |
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Term
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Definition
| negotiation in which union and management must accept an impartial observer's resolution of a dispute |
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Term
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Definition
| a union's attempt to withhold labor from a firm to stop production, or withdrawal of labor from a firm |
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Term
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Definition
| above-equilibrium wages, paid by firms to increase worker productivity |
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Term
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Definition
| union efforts to force employers to hire more workers than wanted or needed |
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Term
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Definition
| states where workers in unionized companies do not have to join the union or pay union dues |
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Term
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Definition
| the direct exchange of one good for another |
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Term
| double coincidence of wants |
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Definition
| when two people have a good or service that the other wants |
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Term
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Definition
| the set of assets in an economy that people regularly use to buy goods and services from other people |
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Term
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Definition
| the ease with which an asset can be converted into the economy's medium of exchange |
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Term
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Definition
| money that takes the form of a commodity with intrinsic value (gold, cigs) |
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Term
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Definition
| no intrinsic value (dollar), used as money only because of govt decree |
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Term
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Definition
| the quantity of money circulating in the economy |
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Term
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Definition
| the paper bills and coins in the hands of the public |
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Term
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Definition
| balances in a bank account that depositors can access on demand by writing a check |
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Term
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Definition
| savings deposits, small time deposits, money market mutual funds, few minor categories and everything in m1 |
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Term
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Definition
| demand deposits, traveler's checks, other checkable deposits, and currency |
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Term
| national banking act of 1863 |
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Definition
| created a new system of federally chartered banks called national banks |
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Term
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Definition
| Fed Reserve System created |
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Term
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Definition
| funds that banks use to satisfy the cash demands of their customers and the reserve requirements of the FED; reserves consist of cash held by banks plus deposits at the FED |
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Term
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Definition
| FDR declared a banking holiday |
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Term
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Definition
| responsible for setting and implementing the nation's monetary policy |
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Term
| there are ___ reserve banks moved under the board of govenors |
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Definition
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Term
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Definition
| number of governors on board of governors |
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Term
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Definition
| length of term of governor on board of governors |
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Term
| federal open market committee |
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Definition
| the 12 member group that makes decisions about the open-market-operations --> purchases and sales of us government securities by the FED that affect the money supply and interest rates; consists of the 7 board of governors plus 5 of the 12 presidents of the reserve banks |
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Term
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Definition
| a bank's additional office that carry out banking operations |
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Term
| money market mututal fund |
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Definition
| a collection of short-term interest earning assets purchase with funds collected from many shareholders |
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Term
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Definition
| a corporation that owns banks |
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Term
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Definition
| deposits financial institutions against which checks can be written and atm or debit cards can be applied |
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Term
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Definition
| measures of the economy's money supply |
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Term
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Definition
| deposits that earn interest but have no specific maturity date |
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Term
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Definition
| deposits that earn a fixed rate of interest if held for the specific period, which can range from several months to several years; CDs |
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Term
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Definition
| money aggregate consisting of m2 plus large-denomination time deposits |
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Term
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Definition
| cards that tap directly into the depositor's bank acct to fund purchases' also called check card |
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Term
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Definition
| a situation in which one side of the market has more reliable info than the other |
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Term
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Definition
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Term
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Definition
| a financial statement that shows assets, liabilities, and net worth at a given point in time, all these are stock measures |
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Term
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Definition
| anything of value that is owned |
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Term
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Definition
| anything that is owed to another individual |
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Term
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Definition
| the dollar amount of reserves a bank is obligated by regulation to hold |
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Term
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Definition
| the ratio of reserves to deposits that banks are obligated by regulation to hold |
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Term
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Definition
| bank reserves exceeding required reserves |
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Term
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Definition
| measure of the ease with which an asset can be converted into money without significant loss of value |
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Term
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Definition
| market for overnight lending and borrow of reserves among banks |
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Term
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Definition
| the interest rate charged in the fed fund market; the interest rate banks charge one another for overnight borrowing |
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Term
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Definition
| the multiplier by which the money supply increases as a result of an increase in fresh reserves in the banking system |
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Term
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Definition
| the reciprocal of the required reserve ration, the max multiple of fresh reserves by which the money supply can increase |
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Term
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Definition
| conducting banking transactions over the internet |
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Term
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Definition
| the purchase of us government bonds by the FED to reduce the money supply |
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Term
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Definition
| the interest rate the FED charges banks that borrow reserves |
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Term
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Definition
| the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners |
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Term
| foreign direct investment |
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Definition
| mcdonalds opens a restaurant in moscow |
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Term
| foreign portfolio investement |
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Definition
| american buys stock in moscow corp |
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Term
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Definition
| the rate at which a person can trade the currency of the country for the currency of another |
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Term
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Definition
| an increase in the value of currency as measure by the amount of foreign currency it can buy |
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Term
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Definition
| a decrease in value of a currency |
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Term
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Definition
| the rate at which a person can trade the goods and services of 1 country for another |
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Term
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Definition
| a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries |
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Term
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Definition
| the amount of investment that firms plan to undertake during a year |
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Term
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Definition
| the amount of investment actually undertaken; equals planned investment plus unplanned changes in inventories |
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Term
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Definition
| a relationship showing, for a given price level, planned spending at each income, or real gdp |
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Term
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Definition
| individuals who would like to work but give up looking |
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Term
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Definition
| unexpected events that affect aggregate supply, sometimes only temporarily |
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Term
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Definition
| unexpected events that reduce aggregate supply |
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Term
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Definition
| the theory that the natural rate of unemployment depends in part on the recent history of unemployment, high unemployment rates increase the natural rate of unemployment |
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Term
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Definition
| structural features of govt spending and taxation that reduce fluctuations in disposable income and consumption, over the business cycle |
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Term
| discretionary fiscal policy |
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Definition
| the deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals, such as employment, price stability, and economic growth |
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Term
| expansionary fiscal policy |
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Definition
| increase in govt purchases, decrease in net taxes, aimed at increasing aggregate demand enough to return the economy to its potential output, used to close contractionary gap |
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