Shared Flashcard Set

Details

macro
test 1
73
Economics
Undergraduate 2
09/23/2013

Additional Economics Flashcards

 


 

Cards

Term
macroeconomics
Definition
deals with the economy as a whole. Focuses on the determinants of total national income, deals with aggregate consumption and investment, and looks at the overall level of prices instead of individual prices
Term
microeconomics
Definition
examines the functioning of individual industries and the behavior of individual decision making units, firms and households
Term
aggregate behavior
Definition
the behavior of all households and firms together
Term
sticky prices
Definition
prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded
Term
business cycle
Definition
the cycle of short term ups and downs in the economy
Term
aggregate output
Definition
the total quantity of goods and services produced in an economy in a given period
Term
recession
Definition
a period during which aggregate output declines, typically two quarters
Term
depression
Definition
a prolonged and deep recession
Term
expansion or boom
Definition
the period in the business cycle from a trough up to a peak during which output and employment grow
Term
contraction, recession, or slump
Definition
the period in the business cycle from a peak down to a trough during which output and employment fall
Term
unemployment rate
Definition
the percentage of labor force that is unemployed
Term
inflation
Definition
an increase in the overall price level
Term
hyperinflation
Definition
a period of very rapid increases in the overall price level
Term
deflation
Definition
a decrease in the overall price level
Term
circular flow
Definition
diagram showing the income received and payments made by each sector of the economy
Term
transfer payments
Definition
cash payments made by the government to people who do not supply goods, services, or labor in exchange for these payments (social security, welfare, vererans' benefits)
Term
treasury bonds, notes and bills
Definition
promissory notes issued by the federal government when it borrows money
Term
corporate bonds
Definition
promissory notes issued by firms when they borrow money
Term
shares of stock
Definition
financial instruments that give to the holder a share in the firm's ownership and therefore the right to share in the firm's profits
Term
dividends
Definition
the portion of a firm's profits that the firm pays out each period to its shareholders
Term
fiscal policy
Definition
government policies concerning taxes and spending
Term
monetary policy
Definition
the tools used by the federal reserve to control the quantity of money, which in turn affects interest rates
Term
fine-tuning
Definition
the phrase used by walter heller to refer to the government's role in regulating inflation and unemployment
Term
stagflation
Definition
a situation of both high inflation and high unemployment
Term
national income and product accounts
Definition
data collected and published by the government describing the various components of national income and output in the economy
Term
Gross Domestic Product
Definition
the total market value of all final goods and services produced within a given period by factors of production located within a country
Term
final goods and services
Definition
goods and services produced for final use
Term
intermediate goods
Definition
goods that are produced by one firm for usein further processing by another firm
Term
value added
Definition
the difference b/t the value of goods as they leave a stage of production and the cost of the goods as they entered that stage
Term
Gross National Product
Definition
the total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where the output is produced
Term
expenditure approach
Definition
a method of computing GDP that measures the total amount spent on all final goods and services during a given period
Term
income approach
Definition
a method of computing GDP that measures income-- wages, rents, interest, and profits-- recieved by all factors of production in producing final goods and services
Term
personal consumption expenditures
Definition
expenditures by consumers on goods and services
Term
durable goods
Definition
goods that last a relatively long time, such as cars and household appliances
Term
nondurable goods
Definition
goods that are used up fairly quickly, such as food and clothing
Term
services
Definition
things we buy that do not involve the production of physical things
Term
gross private domestic investment
Definition
total investment in capital-- that is, the purchase of new housing, plants, equipment, and inventory by the private sector
Term
nonresidential investment
Definition
expenditures by firms for machines, tools, plants,
Term
residential investment
Definition
expenditures by households and firms on new houses and apartment buildings
Term
change in business inventories
Definition
the amount by which firms' inventories change during a period
Term
depreciation
Definition
the amount by which an asset's value falls in a given period
Term
gross investment
Definition
the total value of all newly produced capital goods produced in a given period
Term
net investment
Definition
gross investment minus depreciation
Term
government consumption and gross investment (G)
Definition
expenditures by federal, state, and local governments for final goods and services
Term
net exports (EX - IM)
Definition
the difference between exports and imports
Term
national income
Definition
the total income earned by the factors of production owned by a country's citizens
Term
compensation of employees
Definition
include wages, salaries, and various supplements--employer contributions to social insurance and pension funds
Term
proprietors' income
Definition
the income of unincorporated businesses
Term
net interest
Definition
the interest paid by business
Term
indirect taxes minus subsidies
Definition
taxes such as sales taxes, customs duties, and license fees less subsidies that pay for which it receives no goods or services in return
Term
surplus of government enterprises
Definition
income of government enterprises
Term
Net National Product
Definition
gross national product minus depreciation. nation's total product minus what is required to maintain the value of its capital stock
Term
statistical discrepancy
Definition
data measurement error
Term
personal income
Definition
the total income of households
Term
disposable income/after tax income
Definition
personal income minus personal income taxes
Term
personal saving
Definition
amount of disposable income that is left after total personal spending
Term
nominal GDP
Definition
gross domestic product measured in current dollars
Term
weight
Definition
the importance attached to an item within a group of items
Term
gross national income
Definition
GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation
Term
labor force =
Definition
employed + unemployed
Term
population =
Definition
labor force + not in labor force
Term
unemployment rate =
Definition
unemployed/employed + unemployed
Term
labor force participation rate =
Definition
labor force/population
Term
frictional unemployment
Definition
unemployment due to the normal turnover in the labor market
Term
structural unemployment
Definition
portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries
Term
natural rate of unemployment
Definition
occurs as a normal part of the functioning of the economy. sometimes taken as the sum of frictional and structural unemployment rates
Term
cyclical unemployment
Definition
unemployment that is above frictional plus structural unemployment
Term
Consumer Price Index
Definition
a price index computed each month by the Bureau of Labor Statistics using a bundle that is meant to represent the "market basket" purchased monthly by the typical urban consumer
Term
producer price indexes
Definition
measures of prices that producers receive for products at all stages in the production process
Term
real interest rate
Definition
the difference b/t the interest rate on a loan and the inflation rate
Term
output growth
Definition
the growth rate of the output of the entire economy
Term
per capita output growth
Definition
the growth rate of output per person in the economy
Term
productivity growth
Definition
the growth rate of output per worker
Supporting users have an ad free experience!