Intro to Macroeconomics Flashcards
1
Q
Who is economically inactive?
A
Someone who is not looking for work and is unemployed
2
Q
What is the multiplier accelerator model?
A
Explains the business cycle and it’s impacts on GDP
Y = C + I + G(bar)
3
Q
What do the letters stand for in the multiplier accelerator model?
A
Y= C + I + G(bar)
C - Consumption
I - Investments
G(bar) - gov expenses variable
4
Q
What makes an economics model scientific?
A
Testability
5
Q
What is falsification?
A
The rejection of incorrect models
6
Q
Method of Regression
A
- Estimate regression on the data
- Simulate model under many different scenarios
- Estimate regression using the simulated data
