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Economics 101
Chapters 9-11
23
Economics
Undergraduate 1
11/27/2007

Additional Economics Flashcards

 


 

Cards

Term
Macroeconomics
Definition
Economys overall proformances. (governments headachs) Unemployment problems.
Term

3 Economic Indicators

Definition

1. Unemplyment rate- Tells how the economy is doing.

2. Price index- Inflation rate

3.GDP

Term
Unemployment
Definition
Percentage of the civilian labor force that is unemployed.
Term
Civilian Labor Force
Definition

- Persons over 16 who are unemployed

-Unemployed but activly seeking employment

-Persons who are not in the armed forces

Term

Finding Unemployment rate

Definition

# of unemployed (# of labor force - # employed)

# of labor force

 

answer x 100

Term
3 Types of unemployment
Definition

1. Friction- Out of work while searching or changing jobs.

2. Cyclical- People out of work due to occational reduction in economic total demand for goods and services during recession.

3. Structual- :acl of unmarketable skills due to structural or technological change of the economy.

Term
Recession
Definition
A period of declinging output and employment more than two consecutive quarters.
Term
Expantion
Definition
Rising output and employment
Term

Depression

Definition
Long and deep recession over a period of many years.
Term
Inflation
Definition
A rise in the general level of prices- it means that more prices are going up than coming down.
Term
2 types of inflation
Definition

Unanticipated- government fears benefits of some individuals and groups in society at the expense of others.

Anticipated-

Term
3 types of price index
Definition

1- Consumer price index(CPI)- Rate of inflation for a market basket of consumer products typically purchased by urban residents.

2- Producer price index (PPT)- Rate of inflation in the whole sale price of finished products on both consumers and capitol goods.

3- GDP Deflator (Implicit price)- Value of all final goods and services produced in 1 year. 

Term
How to find Monetary Value
Definition
Total output of the year x selling price of the year.
Term

Finding GDP

Definition
GDP=C (consumption espendisures)+ I (Private investment) + G (Consumer goods) +NX
Term
Income Transfer Payment
Definition

Expendisures for which government receives no goods or services in return.

 

Example: Disabled people, Widows, Medicare

Term
2 Kinds of GDP
Definition

1. Nominal (Money)- not adjusted for changes in the price level of current monetary value.

2. Real GDP- Adjusted for change in price level. Inflation adjusted to GDP.

Term
Real Balance effect
Definition
Decrease in average price level will increase quantity of real output demanded because the purchasing power of your financial costs. AP rises, TQ decreases.
Term
Interest rate effect
Definition
Reduction in general price level tends to decrease the demand for money, decrease interest rates which causes consumption and investment spending to increase, increasing agrigate demand of real GDP.
Term
4 Determinents in the change in aggregate demand.
Definition

1. Consumer and businesses expectation (C+I)

2. Aggregate Wealth- (C+S)

3. Government policies- Spending taxes (G)

4. Foreign income + Foreign prices (NX)

AD= C+I+G+NX

Term
3 Determanents of short run aggregate supply
Definition

1. Input prices

2. Technology

3. Productivity of labor

Term

Supply Shock

Definition
Shocks to the economy caused by the decrease in AS due to higher resourse prices.
Term

Tax revenues Major Sources

Definition

1. Personal income tax

2. Social interest taxes

3. Corporate income takes

4. Excise taxes

Term
Sources of government expenditures
Definition

1. Transfer payments- No goods or services in return.

2. Purchase on goods and services

3. Interest payments on national debt.

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