WEEK 13

Question 1

How to find output per employed worker

Answer 1

Total output / Number of people employed

Question 2

The unemployment rate rises and falls when

Answer 2

Rises during recessions
Falls during expansions

Question 3

When do we have a trade defecit

Answer 3

Exports < imports

Question 4

When do we have a trade surplus

Answer 4

Exports > imports

Question 5

What 2 policys can be stabilization policies

Answer 5

Monetary
Fiscal

Question 6

What is monetary policy

Answer 6

How the central bank uses the money supply and interest rates

Question 7

What is fiscal policy

Answer 7

Decisions that determine the govs budget, including gov expenditure and revenue

Question 8

When is there defecits and surplus in terms of fiscal policy

Answer 8

Defecit - Gov spending > Tax
Surplus - Gov spending < Tax

Question 9

Are fiscal and monetary long or short term stabilization tools

Answer 9

Short

Question 10

What is structural policy

Answer 10

Gov policies aimed at changing structure or institutions - Tax reforms

Question 11

What is positive analysis of macro policy

Answer 11

Looks at the economic consequences of an event or policy - not the ethics

Question 12

What is normative analysis

Answer 12

Addresse whether something morally should be used

Question 13

What is aggregation

Answer 13

Adding up of individual economic variables to find economy - wide totals