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Macro Economics > Exsam 3 > Flashcards

Exsam 3 Flashcards

0
Q

Unemployment rate calculation

A

Unemployment =# UE in labor force/total labor force

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1
Q

Unemployment

A

In labor force and seeking a job with in the last 4 weeks

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2
Q

Labor force calculation

A

Labor force/ total pop. 16 or older= labor force participation rate

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3
Q

Employment with jobs vs. total working population

A

Employed / total work force

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4
Q

Employment vs. total society

A

Employed /total population of country= E vs. TS

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5
Q

Four problems in measuring unemployment

A
  1. Doesn’t truly measure discouraged workers
  2. Part time workers seeking full time work
  3. Underground Economy isn’t measured
  4. Surveys( people lie in order to keep unemployment benefits and say they are seeking a job )
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6
Q

BLS- Burro of labor statistics

Why did unemployment rate go down?

A

Reports unemployment, rates, discouraged workers

  1. Some unemployed workers got hired
  2. Some unemployed workers stopped seeking work
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7
Q

Frictional unemployment

A

Laid off and in proses if seeking a job and will get a job shortly

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8
Q

Structural unemployment

A

No jobs, person has no skills to do jobs

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9
Q

Cyclical unemployment

A

Sessional unemployment, during a Particular season you have a job

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10
Q

Natural unemployment rate

A

5-6% indicates full employment

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11
Q

Minimum wage

A
  1. Could put people out of work
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12
Q

Efficiency wage

A

Employer pays more because they want to keep you

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13
Q

Consumer price index (CPI)

A

Index that measures how price goes up or down a product bought

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14
Q

Producer price index PPI

A

Index measures how price goes up on company bought products

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15
Q

Union

A

Organization that represents the workers (as a group) interest

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16
Q

Collective bargaining

A

When employers negotiate with workers as a whole

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17
Q

Economic growth

A

Is the countries GDP increasing ( economic expansion)

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18
Q

Long term economic growth

A

The proses by which rising productivity increases the average standard of living

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19
Q

Mortality

A

Measure death rate
Male 78
Female 83

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20
Q

Morbidity

A

Measure show healthy a country women less healthy than men

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21
Q

Leisure hours

Paid hours

Discretional hours

A
  • Time spent doing nothing
  • time spent working a job
  • time doing something other than getting paid doing what you like
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22
Q

How to measure how quickly GDP will dubles

A

70/annual GDP growth rate=time GDP will duble

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23
Q

Things to determine long term growth

A
  • technology
  • capital (equipment and machinery)
  • productivity
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24
Q

Potential GDP

A

All of firms products at capacity

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25
Q

Financial systems

A

Consists of financial intermediaries

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26
Q

Financial intermediaries

A

Places that are gonn to in order to handle money.

  • bank
  • credit union
  • ect.
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27
Q

Consumption

A

Consumption= 1/ savings

-consumption and savings have a inverse relationship

28
Q

4 issues to be conserved with when making an investment

A
  1. Do i get my money back
  2. What is my return on my money
  3. How fast will i get my return
  4. What kind of tact benefits will i get
29
Q

Crowding out

A

government spending goes up investments go down, because it takes away investment opportunities for private companies

30
Q

Recession

A

GDP is negative for 2 consecutive quarters

-inflation goes low so unemployment goes high

31
Q

Depression

A

Long term recession

32
Q

Expansion in relation to unemployment

A

Unemployment goes high when inflation is low

33
Q

Deflation

A

Value of money goes up makes us richer

- unemployment goes up during long term bc inflation goes up

34
Q

Stagflation

A

As stagflation occurs unemployment goes up

35
Q

Disinflation

A

Value of dollar goes up and down

- depending on weather or not going up or down will have a different effect on unemployment

36
Q

Long run economics

A

Looks at economic land scape over a long term in the bigger picture

37
Q

Industrial revolution

A
  • Pushes American food production to an all time high

- growth is needed to keep up with the Rest of the world

38
Q

GDP per capita

A

Measures whole economy

(GDP)/ total population of a country

39
Q

GDP growth rate

A

GDP growth rate = 70 / average GDP growth rate (3.2 for USA)

40
Q

Factors that contribute to a grow a economy

A

Equipment and machinery
Human capital
Technology

41
Q

Per worker production function

A

Measures how productive a person , high (PWPF) is better

42
Q

Why don’t counties grown

A 
Low rates of savings and investments 
Rule of law not enforced 
Poor education system 
Poor health 
Civil wars
43
Q

Globalization

A

Talks about the world as a whole

  • competition with the whole world
  • economies generally grow during globalization
44
Q

Growth promotes

A 
Technology improvements 
Economic growth 
Health improvement 
Education improvement 
Savings and investments improve 
Relationships with other countries GDP per capita
45
Q

Aggregate expenditure

A

Same as GDP

AE = I+ GS+ C + net exports

46
Q

Trade deficit

A

Our imports are greater than out exports (USA )

47
Q

Types of products

A

Raw materials

In proses materials

Finished products

48
Q

Inventories

A

Impact how GDP or AE look

49
Q

Things that impact consumption

A
  • Current disposable income
  • interest rates (low interest good)
  • expected future income
  • price levels (low helps economy, hight hurts )
50
Q

Wealth

A

Already accumulated assets

51
Q

Income

A

Ability to accumulate assets

52
Q

Disposable income

A

Money left over after taxes

  • DI goes up consumption goes up
  • DI goes up savings goes up gradually
53
Q

Marginal Popentacy to consume

A

MPC =

54
Q

Savings function

A

As savings gradually go up disposable income goes up

MPC +MPS= 1

55
Q

Cash flow

A

The amount of money that passes through your hands

56
Q

Aggregate demand

A

Looks at demand for whole economy

57
Q

Aggregate supply

A

Looks at supply for whole economy

58
Q

Short term aggregate supply

A

Aggregate supply within a single year

59
Q

Things that effect short term arrogate supply

A

Wealth effect
Interest rate effect
International trade deficit

60
Q

Wealth effect

A

As price goes up, we get poorer

As price goes down we get richer

61
Q

Interest rate effect

A

Interest rates go up we get poorer, as they go down we get richer

62
Q

International trade effect

A

As we sell more we get richer, sell less we get poorer

63
Q

Monetary policy

A

How the government manages money, makes adjustments to interest rates and supply of money

64
Q

Fiscal policy

A

Government Taxes and government spending policy’s

65
Q

Shifts aggravate demand curve to the right

A
  • Government purchases
  • Household exasperation a of future income
  • firms expectations of future probability and spending
66
Q

Shifts aggregate demand curve to the left

A
  • Interest rages go up
  • Personal income taxes or business taxes
  • the growth rate of domestic GDP in relation to foreign GDP
  • exchange rage ( value of the dollar) relative to other currency’s
67
Q

Price in relation to AE

A

Price goes up , AE goes down

68
Q

Interest rates in relation to AE

A

Interest rates go up, AE goes down

Macro Economics (5 decks)

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