What are the ideas of Classical Macroeconomics
What are the Ideas of Keynesian Macroeconomics
What was Keynes theory
Quantity of Labor Demanded
What happens to Quantity demanded when wage rate is lowered
Give me an example of Demand for Labor
What happens at the top of PF
Labor Market Equilibrium
What has to be true about real and potential GDP when the labor market is in equilibrium?
Why do Diminishing Returns happen
Why does a nation face diminishing returns along its production function?
What is the unemployment rate when the economy is at full employment?
Natural Unemployment Rate
What three things do job search depend on
Demographic Change (Job Search)
Unemployment Benefits (Job Search)
Efficiency Wage (Job Rationing)
Union Wage (Job Rationing)
Minimum Wage (Job Rationing)
What does Job rationing do to unemployment
What is Economic Growth
Economic Growth Rate
Economic Growth Rate formula
The standard of living depends on what
How much does Real GDP Growth contribute to the Standard of living
What does the Growth Rate show us about the economy
Formula for Labor Productivity
What happens when Labor Productivity increaes
The Growth of Labor Productivity depends on what two things
Saving and Investment on Physical Capital
Law of Diminishing Returns
What are three ways to expand Human Capital
Classical Growth Theory
New Growth Theory
What are the three facts of market economies that are emphasized in New Growth Theory
So what increases capital and what decreases it
What is the difference between Gross Investment and Net Investment
What is the opportunity cost of the financial resources used to finance the purchase of capital?
How does a change in wealth affect the supply of loanable funds?
Demand for Loanable Funds
Demand for Loanable Funds in simple terms
When does Demand for Loanable Funds go up
How does a change in disposable income affect the supply of loanable funds?
Government Budget Surplus
Government Budget Deficit
Crowding Out Effect
What three things are included in the definition of Money
Commodity or Token (Money)
What does money have to do and how recognizable should it be
Generally Accepted (Money)
Means Of Payment (Money)
What are the three vital Functions of Money
Medium of Exchange (Function)
What is barter and Double Coincidence of Wants
Unit of Account (Function)
Store Value (Function)
How do banks earn a profit?
When banks make profits what are their four assets
What are required reserves and how do they affect bank deposits?
How does the Federal Reserve work like an ATM
To what group does the Federal Reserve System provide banking services?
What is included in the Monetary Base
What can Feds do to the monetary base
How do Banks create money
What is the money multiplier and how is it related to increases in the money supply?
What happens to the banking system reserves when the Fed conducts open-market operations?
What happens to interest rates when the Fed changes the quantity of money?
How do changes in real GDP affect the demand for money?
If the quantity of money demanded is greater than the quantity supplied, what happens in the short run?
How do bonds work
In the long-run, what does money market equilibrium determine?
What is the quantity theory of money?
What is the definition of the velocity of circulation?
Quantity Theory of Money looks at what
What do we call the amount of cash and checkable deposits that people and businesses choose to hold?
How are the growth rate in the quantity of money and in real GDP related?
Are are the four costs of a high Inflation Rate
Inflation decreases what
What are the uncertainty costs of inflation and what do they cause people to do?