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…

MacroEconomics Chapter 7-11 terms

Unemployment Occurs when a worker who is not currently employed is searching for a job without success Unemployment Rate (equation) Unemployed ____________ X100 labor force creative destruction occurs when the introduction of new products and technologies lead to the end of other industries and jobs structural unemployment unemployment caused by Read more…

Macroeconomics Chapters 1-7

Microeconomics Study of how individuals choose to allocate the scarce resources available to them. Macroeconomics The study of how groups of individuals choose to allocate the scarce resources available to them. Aggregate “Total” Scarcity Lack of enough resources to satisfy all desired uses of those resources. Opportunity Cost The value Read more…

Unit Review

What role does the Federal Reserve play? Check all that apply. 1,2,5 The most common measure of inflation is a statistic called the Consumer Price Index As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Check all that apply. Read more…

AP Macroeconomics study guide

Okun’s Law For every 1% increase in unemployment there is a 2% decrease in GDP Unemployment rate plus inflation rate Misery Index What shifts aggregate demand Changes in C, I, G, Xn What shifts aggregate supply Changes in input costs or input availability Fiscal policy Fiscal policy is deficit spending Read more…

AP Macroeconomics Final Review

multiplier (basic) ∆ real GDP ÷ initial ∆ spending national income accounting an assessment of the economy’s health to help shape policy Xn exports including all imports Ig the addition of final purchases by businesses; residential and commercial construction; and changes in inventories, or unsold goods r expected rate of Read more…

Macro Economics

Macroeconomics is mostly focused on The economy as a whole The two topics of primary concern in macroeconomics are Short run fluctuations and employment and long run economic growth The business cycle depicts Short run fluctuations in output and employment The term recession describes what Output and living standards decline Read more…

Macroeconomics

Macroeconomics The study of the economy as a whole. gross domestic product (GDP) the dollar value of all final goods and services produced within the country’s borders in a given year consumer price index (CPI) a measure of the overall cost of the goods and services bought by a typical Read more…

Chapter 6 HW Qs

Macroeconomics is mostly focused on: the economy as a whole The business cycle depicts: short-run fluctuations in output and employment The term “recession” describes a situation where: output and living standards decline Which of the following is most closely related to recessions? negative real growth in output Which of the Read more…

Introduction to Macroeconomics

Why are imports, which bring goods into a country, considered a leakage factor? The money paid to producers of imports leaves the country. The circular flow model examines interactions between which two groups? households and firms In macroeconomics, the economy can best be understood through the use of NOT money. Read more…

Ap Macroeconomics study guide

Three factors of production Land Labor Capital Land natural resources such as trees,water, or minerals Labor mental and physical labor such as autoworkers or scientists Capital factories, machines (producers goods), and money Production possibilities curve shows the tradeoff between spending projects or production of one good to another What does Read more…

Macroeconomics Examples

Determinants of AD C + G + I + (X-M) Determinants of AS Consequences of Unemployment Inflation Disinflation Deflation Stagflation Causes of Economic Growth Measures to Promote Equity (other than taxation) Relationship between Equity and Efficiency Consequences of Economic Growth Sources of Government Revenue Types of Government Expenditures Budget Deficit Read more…