Macroeconomics Chapter 8

aggregate output the total quantity of goods and services produced (or supplied) in an economy in a given period of time. aggregate income the total income received by all factors of production in a given period. aggregate output (income) (Y) a combined term used to remind you of the exact Read more…

Macroeconomics: Chapters 1,2,3

What is economics? study of how people allocate their limits 2 Branches of economics Macroeconomics (large) Microeconomics (small) Macroeconomics Study of behavior of the economy as a whole -Inflation -Taxes -Unemployment Microeconomics study of decision making undertaken by individuals and firms 3 Basic Questions What/How much will be produced? How Read more…

Macroeconomics Chapter 1,2,3,8

Economics the study of the management and allocation of limited resources Economics model a simplified version of reality used to analyze real-world economics situations scarcity a situation in which unlimited wants exceed the limited resources available to fulfil those wants Microeconomics the study of how households and firms make choices Read more…

MacroEconomics Final Review

Economics the study of how people, institutions, and society make economic choices under conditions of scarcity. Macroeconomics the parts of economics concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measure of the total economy. Circular Flow Model the Read more…

Macroeconomics Chapters 1-5

What are the three core choices in the economy? what, how, and for whom Define “economy”. the grand sum of all production and consumption activities Define “scarcity”. the limitation of a nation’s resources What are the four basic factors of production? land, labor, capital, and entrepreneurship Define “economics”. the study Read more…

Macroeconomics Final Exam Study Guide

lower RRR decrease interest rates, decrease unemployment, increase RGDP, increase price levels raise RRR increase interest rates, increase unemployment, decrease RGDP, decrease price levels deduction an amount that can deducted from taxable income S&P 500 500 companies on the NYSE DOW composite index of 30 of largest companies stagflation increase Read more…

AP macroeconomics

absolute advantage the ability to produce something more efficiently capital productive equipment or machinery comparative advantage the ability to produce something with a lower opportunity cost economics a social science that studies how resources are used and is often concerned with how resources can be used to their fullest potential Read more…

Macroeconomics (Chapter 5-7)

Gross Domestic Product (GDP) the *total market value* of all final goods and services produced within a given period by factors of production located within a country a. Final goods and services: goods and services produced for final use b. Intermediate goods: goods that are produced by one firm for Read more…

Macroeconomics: Midterm

When is the output gap negative? When Potential GDP > Real GDP A measure of both the incomes and expenditures of an economy is? Gross Domestic Product The calculation for the GDP deflator is? (Nominal GDP/Real GDP) x 100 The three factors of production include? Land, Labor, Capital What is Read more…

Chapter 10 (What is Macroeconomics?)

Microeconomics the study of individual units that comprise the economy; a single household’s decisions: what jobs to take, how to spend income; a single firms decisions: output, pricing Macroeconomics the study of economic-wide issues: key word is “aggregate”, unit of measure is the nation examples: How many people have jobs? Read more…

Macroeconomics Chapter 28,29, & 30

Comparative advantage Each nation specialized in a product for which its opportunity cost is lower in terms of the production of another product and the nations trade. Free trade Benefits a nation as a whiling but individuals may lose jobs and incomes from the competition from foreign goods and services. Read more…

Principles of Macroeconomics Chapters 1-4

Economics The social science that deals with the analysis of material problems and how societies allocate scarce resources to satisfy human wants Macroeconomics The study of aggregated economic activity such as the forces that determine the level of income and employment in a society Microeconomics the study of disaggregated economic Read more…

macroeconomics chapters 6 – 10

Business Cycle alternate periods of economic expansion and economic recession, fluctuations in economic activity, such as employment and production Recession an economic slump; a depression; a decline Real GDP or Real Gross Domestic Product a measure of GDP in which the quantities produced are valued at the prices in a Read more…

Macroeconomics terms-McGraw Hill

business cycle Recurring increases and decreases (fluctuations) in the level of in economic activity over periods of years; consists of peak, recession, trough, and expansion phases. (such as employment and production) economics the study of how society manages its scarce resources efficiency the property of society getting the most it Read more…

Macroeconomics (Chapter 1 and 2)

Scarcity the limited nature of society’s resources Economics the study of how society manages its scarce resources Efficiency the property of society getting the most it can from its scarce resources Equality the property of distributing economic prosperity uniformly among members of society Opportunity Cost whatever must be given up Read more…

Macroeconomics Definitions

Natural Resources the lands, water, metals, minerals, animals and other gifts of nature that are available for producing goods and services. Scarcity the perpetual state of insufficiency of resources to satisfy people’s unlimited wants. Economics the study of how people work together to transform resources into goods and services to Read more…

Macroeconomics Chapter 7-12

The Business Cycle Gives us insight on our economy Economic Boom 5% or greater increase Economic Bust When the economy shrinks by 5% Law of demand Quantity of a good demanded at a given time period increases as its price fall Classical economic school of thought Adam Smith- “Wealth of Read more…