Macroeconomics Flashcards
1
Q
Macroeconomic health defined by
A
growth in the standard of living
low unemployment
low inflation
2
Q
Four main sectors of the economy
A
Households
Businesses
Government and central bank
Rest of the world
3
Q
Household Decisions
A
Consumption
Leisure
Savings
4
Q
Labor supply decision
A
“how much households decide to work at the cost of their leisure time”
5
Q
opportunity cost
A
6
Q
stock and flow variables
A
7
Q
capital goods
A
8
Q
Capital stock
A
Capital goods in place and used in production
New goods in… investment
Goods out… depreciation
