Course Vocab Flashcards
Absolute Advantage
When some individual, group, or country has the ability to produce a product more efficiently (or better) than another individual, group, or country.
Actually Reserves
The money a bank has on deposit with the Federal Reserve plus vault cash
Aggregate Demand Curve
The negative relationship between spending on output (RGDP) and the average price level (PL)
Aggregate Supply Curve
The positive relationship between all spending on output (RGDP) and the average price level (PL)
Appreciation
The increase in value of on nation’s currency over another nation’s currency
Asset
Anything owned by a bank; shows up in the left column of a balance sheet
Automatic Stabilizers
When changes in the economy occur without any legislative action
Autonomous Consumer Spending
Amount of spending that occurs regardless of the level of disposable income
Balance of Payment
The record of transactions between two nations
Balance Sheet
A tabular way to show a bank’s assets and liabilities
Balanced Budget Multiplier
When taxes and spending change by the same amount and direction to cause the multiplier effect to equal 1
Board of Governors
The governing body of the Federal Reserve; appointed by the President and confirmed by the Senate
Bond
A certificate of debt from the issuer to a bondholder
Budget Deficit
When government spending is greater than tax revenue collected
Budget Surplus
When government spending is less than tax revenue collected
