Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
econ202
macroeconomy
| Question | Answer |
|---|---|
| Gross Domestic Product(GDP) | Value of final goods&services produced and sold within a given territory during a given year. |
| Nominal | Measured in current prices |
| Real | Adjusted to show value measured in the prices of some base year |
| Economic Growth Rate | Rate of increase/decrease in a measure of economic activity |
| Nominal GDP | Current year |
| Real GDP | Some other year than "base year" |
| National Income Identity | where Income(Y) equals Consumption(C)+ Gross Investments(Ig)+ Gov't Spending(G)+ Net Exports(X) |
| Growth Rates | Difference/Base(earlier year) |
| Depression | Gross loss of over 10% |
| Characteristics of Civilian Labor Force | 1. At least 16 years of age. 2. Not a person of military 3. Either full/part time empoyee 4. If one is not employed, they are seeking work. |
| Price Indicies | Allow us to separate the increase in prices from the increase in goods and sevices. |
| GDP Deflator | Price index created from measures of the nominal cost of all goods produced |
| Real GDP | Nominal GDP/ Deflator |
| Inflation Rate | [Index(Base year T) / Index(T+N)]- 1 |
| upturn | output, employment, investment and borrowing, and prices in the product market and factor market are all rising |
| peak | all of the above have reached their maximum; the upper boundary is determined by the population size & its corresponding civilian labor force, the loanable funds that banks are able to offer, & the amount of physical capital available to the economy. |
| downturn | output, employment, investment and borrowing, and prices in the product market and factor market are all falling, accelerated downward by the unemployment in the market for physical capital |
| trough | the cycle bottoms out, with all of the above at their lowest level. The economy pulls out of the trough when a demand for replacement capital creates re-employment in the capital goods sector. That accelerates the economy into another upturn. |
| The National Income Identity | Income equals Consumption+Investment+Government Spending+(Exports-Imports) |
| Incomes | Expenditures |
| Recession | defined the news industry as two successive quarters of negative economic growth. A recession might be determined to have begun before there are actually two quarters of negative growth. |
| Professional Economist's definition of Recession | Defined more vaguely by professional economists, taking into account consumer confidence, business confidence, sales/inventory ratios, new housing starts, and other measures of change in economic activity. |
| Inflation | an increase in the general price level. (Contrasted to an increase in the price of individual products or factors that we study in microeconomics) |
| Unemployment Rate | calculated as the number of unemployed divided by the Civilian Labor Force. |
| To be in the Civilian Labor Force | 1.aged 16 or over 2.employed either full time or part time or actively seeking work (reporting to the state unemployment office and/or drawing unemployment insurance) 3.not retired and receiving social security 4.not a member of the armed forces |
| To be counted as Unemployed you must be | 1.without a full or part time job, and 2.actively seeking work (reporting to the state unemployment office and/or drawing unemployment insurance) |
| cyclical | unemployment that increases and decreases in different sectors over the course of the business cycle. |
| Seasonal unemployment | a kind of cyclical unemployment. Although not significant in the US economy, in economies that remain dominated by agriculture, seasonality is the cycle that affects employment the most. |
| structural | unemployment that results from changes in technology or broad changes in demand, such that the demand for a particular work force with particular skills comes into existence or goes out of existence. |
| frictional | unemployment that results while people are in the midst of job changes. This kind of unemployment is not necessarily undesirable because it also represents upward mobility. |
| Deflation | a negative change in the general price level, such that the rate of inflation as measured would be negative |
| Disinflation | a decrease in the rate of inflation, that is, the rate of inflation is positive but lower than before |
| Stagflation | high inflation rates coupled with high unemployment rates, a phenomenon that began appearing in the 1970s |
| Expenditures Method | starts with the value of final goods and services in the Product Market (Aggregate Demand): Consumption + Gross Investment + Government Spending + (Exports – Imports) |
| Incomes Method | starts by summing incomes paid to factors of production in the Factor Market. This sum yields the national income account known as National Income (incomes earned). To get from National Income to Gross Domestic Product, depreciation and indirect business |
Created by:
bja34
Popular Business sets