Unit 4 Corrections Flashcards
How do you calculate GDP?
final goods + final services
How you calculate unemployment rate?
(number unemployed/total work force) x 100
How do you calculate Consumer Pride Index?
measure of price changes. currentcosts/base costs x 100
How do you calculate Real GDP?
(GDP for time period)/(CPI for time period) x 100
What 4 things are taken into account for GDP spending?
Consumption spending, Investment spending, Government spending, and net exports
The process of trading goods and services via a “time bank” is called
mutual credit system
What forces determine equilibrium wages?
supply and demand
what four factors contribute to differences in wages?
human capital, working conditions, discrimination, government actions
How has the labor market in the USA changed since the 1950s
less people, inclusion of women and more education
Representative money
paper money that represents something of value
What is fiat money
money because the government orders it to be so
What is currency
paper and coins
What is demand deposits
when funds in checking accounts are converted into currency
What is a central bank?
A nation’s main monetary authority
What is the federal open market committee
A board of the fed that supervises the sale and purchase of securities
What is check clearing
the bank records keep track of expenditures
What is required reserve ratio
the fraction of the bank’s deposits that must be kept in reserve
What are open market operations?
The sales and purchase of marketable federal government securities
what is expansionary and contractionary policy?
a plan to increase or decrease the amount of money supply
What are wage and price controls
limits by government set to determine wage and price levels
