Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

12th grade > econ > Flashcards

econ Flashcards

1
Q

factor payment

how GDP is measured

A

land-rent
labor-wage
capital-interest
entrpreneurship-profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

per capita GDP

A

GDP/population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

GDP

A

measured anything that is made in the country per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

recession

A

when GDP goes down for 6 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

intermediate goods

A

raw materials needed to make something. doesn’t count as GDp bc double counting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

excluded from GDP

A 
foreign stuff
any work you do for yourself
barter
housework
cash
transfer payment-money from gov
stock/bonds
used
crime/pollution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

income method way of computing GDP

A

wages+
interest+
rent+
profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

expenditure method way of computing GDP

A

Consumer spending+
investment-business spending+
gov spending(most volitole)+
net export

*includes housing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

unplanned investment

A

made but not sold at the end of the year, in GDP but is bad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

business cycle

A

expansion/recovery
peak-inflation
contraction/recession
trough/depression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

demandpull inflation

60

A

consumer buy product faster than it can be produced, price rises
peak of business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

fiscal policy

A

uses taxes n gov spending to alter economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

monetary policy

A

uses supply of money to change interest rates, by federal reserve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

gdp-depreciation

A

net domestic product

depreciation: new thing that replaces old

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

personal income-personal taxes

A

disposable income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

disposable income-expenses

A

discretionary income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

frictional unemploy

A

btw transtion in life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

cyclical unemploy

A

during contraction of business ccle, slowdown, laidoff

19
Q

structural unemploy

A

skills obselete

20
Q

technical unemploy

A

job replaced by machine

21
Q

discouraged worker-not counted as unemployed

A

unemployed stop looking
or
unemployed for 2 years

22
Q

unemployment rate

A

unemployed/

labor force

23
Q

labor force

A

unemployed+employed+looking

24
Q

good percentage

A

unemploy 4-6
GDP 3
inflation 2

25
Q

labor force participation rate

A

labor force/

population

26
Q

misery index

A

inflation+unemployment

27
Q

cost-push inflation 70

A

cost of production increases
prices increases
high unemployment

28
Q

hyperinflation

A

> _ 50 percent inflation

overprinting money

29
Q

qunatity theory of money

A

increase money supply leads to increase in price level

30
Q

menu cost

how inflationcreates distortions in the econ n impact ppl

A

business spends time, effort and money to change prices

31
Q

shoe leather cost

A

consumers running around and buying things before prices go up

32
Q

impacted most by inflation

A

consumers-prices rising faster than income
fixed income-retired sss
savers
banks with fixed rate loans-paying back during flation with less valuable money

33
Q

winners of inflation

A

investors in gold/real estate
gov in debt
paying back loans on fixed dollar contract

34
Q

leading indicators of future econ

A

changes in 6-9 months

  • avg work week, decreases=unemployed
  • building permits, increases=unemployed
  • stock market, increases=good
  • inventory
35
Q

3 measures of inclation

A

consumer price index-CPI (popular)
GDP deflator
producer price index

36
Q

CPI

A

uses fixed weighted market basket of goods/services that consumer purchase regularly
most heavily weighed=housing/mortage
changes from year to year is infaltion rate

37
Q

weakness in CPI

A

subsitution bias
uses only retail prices
quality changes, increase in quality, increases price
intro of new products

38
Q

GDP deflator percentage

A

measures good.services actually produced based on GDP
nominal GDP/real GDP = inflation rate

similar to CPI

39
Q

Producer price index

A

measures good purchases by business. increases=foreshadows increases in toher measures of inflation. raw materials included

40
Q

classical economy theorest

A

economy is flexible, will go back to ful employ, gov stays out of it

41
Q

keynesian

A

econ is rigid, needs intervention

42
Q

why Aggregate demand curve slopes down

A

real balnces wealh effect
interest rate effect
foreign purchases effect

43
Q

why AD curve shift

A

stock market boom
increase consumer spending-increases AD
changes in CIGX

12th grade (39 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions