Macroeconomics chapter 10 review

APC average propensity to consume APC=consumption/income APS average propensity to save APS=saving/income MPS Marginal propensity to save MPS=change in saving/change in income MPC Marginal propensity to consume MPC= change in consumption/change in income non-income determinants of consumption and saving wealth borrowing expectations real interest rates business taxes when government is Read more…

AP Macroeconomics Vocab and Concepts

fallacy a false assumption/statement/theorem normal good if incomes increase, the demand for this type of good will also increase inferior good if incomes decrease, the demand for this type of good will increase price ceiling sets the maximum legal price a seller may charge for a product/service price floor sets Read more…

Macroeconomics Packet 1: Chapter 1

economics is the what of science? the scarcity of science what does macroeconomics deal with? the overview of the economy, especially government, business sectors and households across the nation microeconomics deals with what? the details of the economy economic models(theories) these come directly from the scientific method 1. Facts-gather facts Read more…

Macroeconomics AS 3 (8)

Economic Performance Success or failure in achieving economic policy objectives Economic Recovery When short-run economic growth takes place after a recession Trend Growth Rate The rate at which output can grow, on a sustained basis, without putting upward or downward pressure on inflation. It reflects the annual average percentage increase Read more…

Macro 1

1.Macroeconomics deals with: the working of the entire economy or large sectors of it. The primary emphasis in macroeconomics is on: the national economy. Scarcity in economics means: not having sufficient resources to produce all the goods and services we want. The opportunity cost of something is: what is given Read more…

Macroeconomics Ch 1

economics The study of the choices that individuals and societies make in using scarce resources which nature and previous generations have provided. opportunity cost The best alternative given up when faced with a choice or decision. (Think trade-off) marginalism A process of evaluating the incremental cost or benefit of a Read more…

Economic Chapter 1

When economics say scarcity, they mean the human desire for gods exceeds the available supply of time, goods and resources Scarcity is a problem because human wants are unlimited while resources are limited Scarcity is a subjective concept that human wants can never be satisfied Which of the following would Read more…

Macroeconomics Ch 9

The FE line shows the level of output at which the ________ market is in equilibrium. Labor The FE line is vertical. The FE line is vertical because the level of output at full employment doesn’t depend on the real interest rate. Which of the following would shift the FE Read more…

AP Macroeconomics: Chapter 3 Key Terms

Market institution or mechanism that brings together buyers (“demanders”) and sellers (“suppliers”) of particular goods, services or resources Demand schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified Read more…

Macroeconomics Chapter 2 Test

Economics Studies how we get the MOST out of our RESOURCES Land Labor Capital Entrepreneurial Ability Factors of production Labor Human Resources Ex. Teachers Land Natural Resources Ex. Fossil Fuels Capital Ex. Buildings and equipment Scarcity Purpose and fundamental problem of economics. Limited resources w/ which to meet unlimited wants. Read more…

Macroeconomics- Unit 3- The Multipliers

What does consumption depend on? disposable (after-tax) income and whether people choose to save or to spend. Define the average propensity to consume (APC) The proportion of disposable income that a person spends. what is the equation for APC APC= Consumption/Disposable Income Define Average Propensity to save (APS) the proportion Read more…

Macroeconomics Exam 1

B Positive statements: A) imply value judgments must be made. B) are factual and can be tested. C) deal with what ought to be. D) are dealt with primarily in microeconomics. A Economists concerned about the behavior of individual households, firms, and industries are studying: A) microeconomics. B) macroeconomics. C) Read more…

AP Macroeconomics Exam Review

economics the study of how people, firms, and societies use their scarce productive resources to best satisfy their unlimited material wants scarcity the imbalance between limited productive resources and unlimited human wants. Because economic resources are scarce, the goods and services a society can produce are also scarce. trade-offs scarce Read more…

Econ 1040

C(a) + I(g) + X(n) + G = GDP The equation underlying the mainstream view of macroeconomics 1. price stickiness 2. unexpected shocks to AD/AS the mainstream view says that instability arises from two sources: monetarism 1. focuses on money supply 2. markets are highly competitive 3. the competitive market Read more…

MacroEconomic Chapter 10

S=DI-C Saving equals disposable income(after tax) minus consumption. 45 degree line On the 45 degree, consumption is equal disposable income. The vertical distance between 45 degree line and any point on the horizontal axis measures either consumption or disposable income. Consumption schedule Reflects the direct consumption and disposable income relationship. Read more…

macroeconomics test #1

macroeconomics deals with the working of the entire economy the primary emphasis in macroeconomics is on the national economy scarcity in economics means society is unable to produce all the goods and services we want with existing resources the basic concern of economics is to study the choices people make Read more…