Exam 2

Question 1

GDP

Is what?

Answer 1

The current market value of the total final goods and services produced within the nation that is producing

Question 2

GNP everyone uses and it is

Answer 2

The value of goods and services produced by nation resources aboard less

Question 3

Chap. 14

Currency in which the commodity itself serves as money

Answer 3

Commodity Money

Question 4

What are the types of money?

And describe

Answer 4

Commodity
Metallic
Fiat
Representative

Question 5

Anything generally accepted in exchange for other goods and services

Answer 5

Money

Question 6

4 essential goals of money

Answer 6

Standard of value- means that we can value of all other g/s in terms of money

Medium Exchange - eliminate tuned for a “double coincidence of wants”

Store of Value - Enables us to convert the excess of goods into money and train the money

Money Stock - Qty. of money in existence at any given time

Question 7

Measuring of the Money Supply

Answer 7

M1 & M2
M1: Liquid definition of money; checking deposits
M2: Total of M1 + Savings deposits a.k.a. All assets (is growing)

Question 8

Chap. 11
Circular flow demonstrate
If injection were greater than leakages the economy would expand
If leakages were greater than injection th economy would contract

Answer 8

Republicans are for injections

Democrats are for leakages