Karteikarten
ECON 105 final exam
Karten in diesem Stapel (118)
- 1macroeconomicsthe study of a nation's economy as a whole; focuses on the issues of inflation, unemployment, and economic growth
- 2GDPthe total market value of final goods and services produced within an economy in a given year
- 3nominal GDPthe value of GDP in current dollars
- 4real GDPa measure of GDP that controls for changes in prices
- 5economic growthsustained increases in the real GDP of an economy over a long period of time
- 6consumption expenditurespurchases of newly produced goods and services by households
- 7private investment expenditurespurchases of newly produced goods and services by firms
- 8gross investmenttotal new investment expenditures
- 9depreciationreduction in the value of capital goods over a one-year period due to physical wear and tear and also to obsolescence
- 10net investmentgross investment minus depreciation
- 11goverment purchasespurchases of newly produced goods and services by local, state, and federal governments
- 12transfer paymentspayments from governments to individuals that do not correspond to the production of goods and services
- 13net exportsexports minus imports
- 14exporta good or service produced in the home country and sold in another country
- 15importa good or service produced in a foreign country and purchased by residents of the home country
- 16trade deficitthe excess of imports over exports
- 17trade surplusthe excess of exports over imports
- 18employedindividuals who do not currently have a job but are actively looking for work
- 19labor forcetotal number of workers, both the employed and unemployed
- 20unemployment ratepercentage of the labor force that is unemployed
- 21unemployment ratepercentage of the labor force that is unemployed
- 22labor force participation ratethe percentage of the population over 16 yrs of age that is in the labor force
- 23discouraged workersworkers who left the labor force because they could not find jobs
- 24cyclical unemploymentunemployment that occurs during fluctuations in real GDP
- 25frictional unemploymentunemployment that occurs with the natural workings of the economy, such as workers taking time to search for suitable jobs and firms taking time to search for qualified employees
- 26structural unemploymentunemployment that occurs when there is a mismatch of skills and jobs
- 27natural rate of unemploymentthe level of unemployment at which there is no cyclical unemployment, only frictional and structural
- 28full employmentthe level of unemployment that occurs when the unemployment rate is at the natural rate
- 29unemployment insurancepayments unemployed people receive from the government
- 30consumer price indexa price that measures the cost of a fixed basket of goods chosen to represent the consumption pattern of a typical consumer
- 31cost-of-living adjustmentsautomatic increases in wages or other payments that are tied to the CPI
- 32inflation ratethe percentage rate of change in the price level
- 33deflationnegative inflation or falling prices of goods and services
- 34anticipated inflationinflation that is expected
- 35menu costsa type of anticipated inflation that is the costs associated with changing prices and printing new price lists when there is inflation
- 36shoe-leather costsa type of anticipated inflation that is costs of inflation that arise from trying to reduce holdings of cash
- 37unanticipated inflationinflation that is unexpected
- 38hyperinflationunanticipated inflation that is an inflation rate exceeding 50% a month
- 39real GDP per capitaGDP per person adjusted for changes in prices. It is the usual measure of living standards across time and between countries
- 40growth ratethe percentage rate of change of a variable from one period to another
- 41rule of 70output will double in 70/x years, where x=percentage growth
- 42convergencethe process by which poorer countries close up the gap with richer countries in terms of real GDP per capita
- 43capital deepeningincreases in the stock of capital per worker
- 44technological processmore efficient ways of organizing economic affairs that allow an economy to increase output without increasing inputs
- 45human capitalthe knowledge and skills acquired by a worker through education and experience and used to produce goods and services
- 46savingincome that is not consumed
- 47growth accountinga method to determine the contribution to economic growth from increased capital, labor, and technological progress
- 48creative destructionthe view that a firm will try to come up with new products and more efficient ways to produce products to earn monopoly profits
- 49short run in macroeconomicsthe period of time in which prices do not change or do not change very much
- 50aggregate demand curvea curve that shows the relationship between the level of prices and the quantity of real GDP demanded
- 51real-nominal principlewhat matters to people is the real value of money or income not the face value of money or income
- 52wealth effectthe increase in spending that occurs because the real value of money increases when the price level falls
- 53the interest rate effectwith a given supply of money in the economy, a lower price level will lead to lower interest rates
- 54the international trade effectin an open economy, a lower price level will mean that domestic goods become cheaper relative to foreign goods, so the demand for domestic goods will increase
- 55changes in the supply of moneyan increase in the supply of money in the economy will increase aggregate demand and shift the curve to the right
- 56changes in taxesa decrease in taxes will increase AD and shift the curve to the right
- 57changes in government spendingAt any given price level, an increase in government spending will increase AD and shift the curve to the right.
- 58multiplierthe ratio of the total shift in aggregate demand to the initial shift in aggregate demand
- 59consumption functionthe relationship between the level of income and consumer spending
- 60autonomous consumption spendingthe part of consumption spending that does not depend on income
- 61marginal propensity to conusmerthe fraction of additional income that is spent
- 62marginal propensity to savethe fraction of additional income that is saved
- 63aggregate supply curvecurve that shows the relationship between the level of prices and the quantity of output supplied
- 64long-run aggregate supply curvea vertical aggregate supply curve that represents the idea that in the long run, output is determined solely by the factors of production
- 65short-run aggregate supply curvea relatively flat aggregate supply curve that represents the idea that prices do not change very much in the short run and that firms adjust production to meet demand
- 66supply shocksexternal events that shift the aggregate supply curve
- 67stagflationa decrease in real output with increasing prices
- 68fiscal policychanges in government taxes and spending that affect the level of gdp
- 69expansionary policiesgovernment policy actions that lead to increases in aggregate demand
- 70contractionary policiesgovernment policy actions that lead to decreases in aggregate demand
- 71stabilization policiespolicy actions taken to move the economy closer to full employment or potential output
- 72inside lagsthe time it takes to formulate a policy
- 73outside lagsthe time it takes for a policy to actually work
- 74discretionary spendingthe spending that congress authorizes on an annual basis
- 75entitlement and mandatory spendingspending that congress has authorized by prior law, primarily providing support for individuals
- 76medicarehealth program for the elderly (entitlement spending)
- 77medicaidhealth program for the poor (entitlement spending)
- 78social securityprovide retirement support and a host of other benefits
- 79supply-side economicsa school of thought that emphasizes the role that taxes play in the supply of output in the economy
- 80Laffer Curvea relationship between the tax rates and tax revenues that illustrates that high tax rates could lead to lower tax revenues if economic activity is severely discouraged
- 81budget deficitthe amount by which government spending exceeds revenues in a given year
- 82budget surplusthe amount by which government revenues exceed government expenditures in a given year
- 83automatic stabilizerstaxes + transfer payments that stabilize GDP without requiring policy makers to take explicit action
- 84permanent incomeestimate of a household's long-run average level of income
- 85moneyany items that are regularly used in economic transactions or exchanges and accepted by buyers and sellers
- 86medium of exchangeany item that buyers give to sellers when they purchase goods and services
- 87barterthe exchange of one good or service for another
- 88double coincidince of wantsthe problem in a system of barter that one person may not have what the other desires
- 89principle of voluntary exchangea voluntary exchange between two people makes both people better off
- 90unit of accounta standard unit in which prices can be stated and the value of goods and services can be compared
- 91store of valuethe property of money that holds that money preserves value until it is used in an exchange
- 92commodity moneya monetary system in which the actual money is a commodity, such as gold or silver
- 93gold standarda monetary system in which gold backs up paper money
- 94fiat moneya monetary system in which money has no intrinsic value but is backed up by the government
- 95M1the sum of currency in the hands of the public, demand deposits, other checkable deposits, and traveler's checks
- 96M2M1 plus other assets, including deposits in savings and loans accounts and money market mutual funds
- 97balance sheetan account statement for a bank that shows the sources of its funds as well as the uses of its funds
- 98owners equitythe funds provided to the bank by its owners
- 99reservesthe portion of banks' deposits set aside in either vault cash or as deposits at the federal reserve
- 100require reservesthe specific fraction of their deposits that banks are required by law to hold as reserves
- 101excess reservesany additional reserves that a bank holds above required reserves
- 102reserve ratiothe ratio of reserves to deposits total increase in checking account balance throughout all banks
- 103money multiplierthe ratio of the increase in total checking account deposits to an initial cash deposit
- 104central banka banker's bank, an official bank that controls the supply of money in the country
- 105lender of last resorta central bank is the lender of last resort, the last place, all others having failed, from which banks in emergency situations can obtain loss
- 106monetary policythe range of actions taken by the federal reserve to influence the level of GDP or inflation
- 107federal reserve bankone of the 13 regional banks that are an official part of the federal reserve system
- 108federal open market committeethe group that decides on monetary policy: it consists of the 7 members of the board of governors plus 5 of 12 regional bank presidents on a rotating basis
- 109board of governers of the federal reservethe seven person governing body of the federal reserve system in Washington D.C.
- 110money marketthe market for money in which the amount supplied and the amount demanded meet to determine the normal interest rate
- 111transaction demand for moneythe demand for money based on the desire to facilitate transactions
- 112principle of opportunity costwhat you sacrifice to obtain something
- 113open market operationsthe purchase or sale of US government securities by the Fed
- 114open market purchasesfeds purchase of government bonds from the private sector
- 115open market salesfeds sale of government bonds to the private sector
- 116discount rateinterest rate at which banks can borrow from the fed
- 117federal funds marketmarket in which banks borrow and lend reserves to and from one another
- 118federal funds rateinterest rate on reserves that banks lend each other
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- Beschreibung
- ECON 105 final exam vocabulary Spring 2015.
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