2nd long cam Flashcards
economies of scale
reduction of cost as a product of producing two
GDP
market valve of all final goods/service produced by an economy within a given period of time
national income
total income earned by current factors of production
net domestic product
amount of output we could consume without reducing our stock of capital
demand pull inflation
increase in price due to an excess demand for goods
hyperinflation - paid increase in prices
increase in money supply
cost - push inflation
increase in factor cost which increases price
stagflation - stagnant growth + inflation
macro - consequences of inflation
price effects
income effects
wealth effect =house, business, stocks, gold precious metals
speculative effects =assest bubble
intermediate goods
goods used to make final goods
final goods
goods used for final consumption or use in the economy
flow stock
measured from one point in time to another
flow variable
GDP, inflation
discouraged worker
lazy, looking for jobs
frictional unemployment
in between jobs 2-3%
structural unemployment
1-2%. mismatch between job skills vs job vacancies ex: Ai
Seasonal Unemployment
0-.5% landscaping
