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Details

AP Macroecon Graphs
What the title says
15
Economics
12th Grade
04/25/2011

Additional Economics Flashcards

 


 

Cards

Term
Production Possibilities Curve
Definition

X-- One possible product

Y-- Other possible product

 

Arced line; shows Opportunity cost

Term

Aggregate Demand/ Aggregate Supply

(AD/AS)

Definition

X-- GDP

Y-- Price Level

Equilibrium is Real Output

Term
Money Market
Definition

X-- Quantity of Money

Y-- Nominal Interest Rate

 

(Supply is vertical; Demand downward sloping)

Term
Loanable Funds Market
Definition

X-- Quantity of Loanable Funds

Y-- Real Interest Rate

Term

Foreign Exchange Market

(ex: Dollars and Yen)

Definition

X-- Quantity of Yen

Y-- Dollar Price of Yen

Term
THE PHILLIPS CURVE!
Definition

X-- Unemployment Rate %

Y-- Inflation Rate %

 

Inflation and Unemployment have an INVERSE relationship

(LR is vertical)

Term

TRUE OR FALSE:

In the Phillips Curve there is a trade off between inflation and unemployment.

Definition

TRUE: Short run

 

FALSE: Long Run (there is no trade off!)

Term
CIRCULAR FLOW MODEL
Definition

Resource Market

Buisness           Gov't           Housholds

Product Market 

Term
Equation for GDP
Definition

Y=C+I+G+Xn

(Xn= open economy)

Term
Real Interest Rate Equation
Definition
Real Interest Rate= nominal rate- inflation rate
Term
Labor Force Participation Rate Equation
Definition
(Labor Force/ Adult Population)100
Term
Money Multiplier Equation
Definition
1/ Reserve Ratio
Term
Expenditures Multiplier
Definition
1/(1--MPC) 
Term
M1
Definition
Narrowly defined money supply (currency and checkable deposits)
Term
M2
Definition
M1+noncheckable savings deposits, money market deposits, and small time deposits, and mutual funds
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