Macroeconomics Flashcards
When Income is used for purposes other than domestic consumption is a
Leakage
Individuals paying taxes to the federal government is considered in
Macroeconomics
A productivity possibility curve measures the maximum amount of various goods and services an
Economy can produce at a given time
A measure of the market value of all final goods and services produced within the us during one year period
Gross domestic product
What is measured at current prices
Nominal GDP
What is measured at constant prices
Real GDP
Measure of the market value of maximum production of final goods and service that is possible in the economy
Potential GDP
During a recession
Actual national income is less than potential national income as a result of decreased demand
Product should be included in GDP the year it was finished not when it was
Sold
adjustment from GNP to nnp is deducting
Depreciation
Positive GDP gap exist when
Potential GDP exceeds real GDP
Workers bring transitioned between jobs is
Fractionally unemployed
Workers whose prior jobs have been greatly reduced or eliminate or lack skills
Structural employment
Downturn in business cycle related to
Cyclically unrmployed
A person must b 16 to consider to b part of the
Workforce
The cyclical rate is the difference between total rate of unemployment and natural rate of unemployment
Cyclical
Cyclical unemployment is not considered part of
Natural
Marginal propensity to consume measures the change in consumption spending as the percent change
In disposable income
Average propensity to consume is
Consumable goods divided by disposable income for that year
With increase in government spending the demand curve shifts
Upwards and right
Acquisition of common stock is considered
Savings
Increase in the minimum wage rate would be an increase in the cost of economic resources which would
Shift the supply curve inward (reduction in supply)
A decrease in labor would shift the aggregate supply
Inward
A Keynesian supply curve is horizontal up to the assumed level of output at
Full employment
What accompany an unexpected reduction in aggregate supply
An increase in the price level
An increase in selling price does not cause a
Shift in supply curve
A higher level of output reflects a shift in the supply curve to the right
Increase in quantity of output and a decrease in price
A rise in exports will shift the demand
Outward
Aggregate demand and supply intersect at a price and quality
Above or below the potential GDP
Variations in business cycles are attributable to
Duration and intensity
A peak in a business cycle is the end of an
Expansionary period
The business cycle is measured by
Real GDP
A general decline in goods and services is
Deflation
The formula to compute percentage changes is
Current - prior / prior
During inflation depreciation reflects the old price of an asset and not the
Current price of the asset
In macroeconomics free market flow model what is no considered an injection
Imports because injections are sources of amounts added to domestic production that do not recur from domestic consumption
