Term
Icelands real GDP grows at a rate of 2.6 percent and population grows at a rate of .8 percent.
Icelands real GDP per person grows at a rate of |
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Definition
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Term
| The consumer price index measures the changes f the |
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Definition
| prices paid by consumers for a fixed markey basket of consumer goods and services |
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Term
| The core inflation does not include ________ because _______. |
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Definition
| energy and food because they fluctuate heavily |
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Term
| To convert the nominal interest rate to the real interest rate we |
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Definition
| subtract the inflation rate from the nominal interest rate |
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Term
| The classical macroeconomical model proposes that |
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Definition
| markets work efficiently to produce the best macroeconomical outcomes |
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Term
| Neoclassical growth theory predicts that real GDP will |
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Definition
| grow at a rate that is determined by pace of the technological change |
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Term
| The difference between the unemployment rate and the real employment rate is that the real unemployment rate also includes the |
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Definition
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Term
| What is the benefit of implementing efficiency wage rate at a company? |
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Definition
| It attracts the most productive workers |
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Term
How do you calculate the real wage rate given the nominal wage rate and the CPI |
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Definition
| you take the nominal wage rate and divide it by the CPI |
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Term
| If the federal reserve _________ the required reserve ratio, the interst rate ________ |
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Definition
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Term
| The amount of money that a bank can create is limited by |
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Definition
| the banks excess reserves |
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Term
| When CPI rises rapidly, the inflation rate is ____ |
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Definition
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Term
| Between the base period and the next period, prices stay constant. the GDP price index in the next period |
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Definition
| is equal to 100 because there is no change |
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Term
| To compare the real price of gas in 1975 to the real price in 2008, we need to know |
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Definition
| the two prices in both years and the cpi for both years |
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Term
| Who is the federal reserve board chairman? |
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Definition
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Term
| If the labor productivity rises above the subsistence level then, according t classical growth |
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Definition
| a population explosion will occur |
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Term
| The consumer price index (CPI) measures |
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Definition
| the average of the prices paid by urban consumers for a fixed market basket of goods and services |
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Term
| In 2009, US real GDP decreases by 3 percent and the population grew by 1 percent. Thus real GDP per cap |
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Definition
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Term
| If labor productivity is 30$ per hour and there are 300 billion hours worked what is real gdp? |
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Definition
| 30 X 300 billion hours = 9000 billion |
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Term
| The widespread adoption of computers in the workplace has likely lead to |
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Definition
| an increase in labor productivity because computers are capital good |
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Term
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Definition
| accumulated skills and knowledge of human beings |
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Term
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Definition
| used to describe todays money because it is money set by law |
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Term
| A key element in the classical growth theory is that |
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Definition
| an increase in population leads to increase in labor supply and a decline in real wage rates |
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Term
| An official measure of money in the Unites States M1, which includes the sum of |
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Definition
| currency and checkable deposits |
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Term
| The federal reserve system is organized into ____federal reserve districts |
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Definition
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Term
| What is not an element in the structure of the FED? |
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Definition
| Executive council to the governor |
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Term
| The rule of ____ can be used to calculate the number of years that it takes for the level of a variable to ____ |
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Definition
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Term
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Definition
| M1 plus savings deposits, small time deposits, and money market funds |
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Term
| Labor productivity is defined as |
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Definition
| Real GDP per hour of labor |
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Term
| The federal open market committee is |
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Definition
| a main policy making body of the fed |
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Term
| In order to influence the interest rate, the federal reserve system can immediately adjust |
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Definition
| reserves of the banking system |
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Term
| _____ increases the size of the money multiplier |
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Definition
| a reduction in the desired reserve ratio |
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Term
| The theory that suggests our umlimited wants will lead to perpetual economic growth is |
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Definition
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