Final Exam Flashcards
What is GDP?
Gross Domestic Product. The Sum of all goods and services a country produces within its borders on an annual basis
How do we conceptualize GDP?
C (consumer expenditures) + I (Investment Expenditures) + G (Government Spending) + NX (Net Exports)
How much of the US GDP is in the “C” term?
About 70%
Which term in GDP is negative?
NX
Marshall Plan
American attempt to assist the European economies recovery in the wake of WW2.
Goals of the Marshall Plan?
Help European stave off the looming threat of communism, establish free trade zone in Europe, raise production in European factories that had been decimated by WW2, & provide a boost to European currency that were suffering from inflation after the war.
European Coal and Steel community
Established by Treaty of Paris in 1951. Settles the question of what to do with the Ruhr, the coal rich region disputed by France and Germany.
Who signed the Treaty of Paris?
France, Germany, Italy, Belgium, Luxembourg, and the Netherlands.
Goal of the Treaty of Paris?
Make war materially impossible.
Treaty of Paris introduces supranational principles to the EU, which…
Creates a high authority to settle disputes between member states
Article 5
An attack adjacent one shall be considered an attack against all.
Famous Lord Ismay quote
NATO exists to “Keep the Russians out, the Americans in, and the Germans down.”
European Coal and Steel Community calls mount for a…
Single European army and military strategy
The Council
Composed of the heads of state or government of every member state. Idea is very limited number of leaders, who meet in closed rooms, very few assist present
Council is an intergovernmentalist institution, with
informal power.
The council has very limited powers, but…
Essentially has been able to do what it wants, focusing on matters important to it, and dealing with them how it wants to.
Types of situations the council meets?
Extraordinary circumstances, informal meetings, and symbolic meetings
The Commission (Executive Branch)
Each member state appoints one representative to the College of Commissions, the rest of the commission is composed of bureaucrats, who each held specific agencies in the body.
Who are the agenda setters for the European Union?
College of Commissioners
Commission is the only institution of the EU with the power to?
Propose legislation
Who’s the President of the Commission?
Rotating President with a 5-yr term
The European Parliament (Legislative)
Only democratically-elected in the member states branch of the EU.
Debate over democracy deficit
Trend of the 1990’s and beyond is to strengthen the European Parliament to ameliorate concerns over the perceived democratic deficit of the EU.
The European Parliament is a co-decision procedure, which means it…
Requires EP and Council of Ministers to agree to the exact text before any bill can become law