Macroeconomics Flashcards
National income and product accounts
Keep track of the flows of money between different sectors of the economy
Consumer Spending
Household Spending on Goods and Services
Stock
Share in the ownership of a company
Bond
Borrowing in the form of an IOU that pays interest
Government transfers
Payments by the government to individuals for which no good or service is provided in return, e.g. Kindergeld
Disposable income
Income plus goverment transfers - fixed cost; total amount of household income available to spend on consumption and savings
Employment
Number of people currently employer in the economy (full and part time)
Unemployment
Number of people actively looking for work (currently unemployd)
Labor force
Sum of employment and unemployment
Labor force participation rate
Percentage of people 16 or older in labor force
Unemployment rate
Percentage of people in labor force that are unemployd
Discouraged workers
Nonworking people capable of working have given up looking for a job given the state of the job market
Marginally Attached workers
Would like to be employed, have looked for a job in the recent past but currently aren’t looking for work
Efficiency wages
Wages that employers set above the equilibrium wage rate as an incentive for better employee performance
GDP
Market value of all final good&services produced within a country in a given period of time
