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11 Cards in this Set
- Front
- Back
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Real Value is measured by the ___ price |
Base |
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Nominal Value is measured by the ___ price |
current |
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CPI and GDP deflator formula |
Current / Base * 100 |
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Inflation is the percentage change in price level |
( current year PL - last year PL ) / last year PL * 100 |
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Any change in investment or savings causes change in the _____ rate |
Interest |
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Increase investment by |
1. decrease taxes 2. investment tax credit 3. cut government deficit |
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The Fed changes the ______ supply which affects the interest rate, which affects spending. |
money |
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Excess reserves is total minus required. The simple money multiplier is |
1 / Required Reserves |
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An increase in the Money supply will decrease the value of money and increase the price level. |
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Determinants of productivity include |
human capital, physical capital, and natural resources. Physical capital - tables + chairs in restaurant |
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The government attempts to use fiscal policy to keep ... |
...output near or at the sustainable level of output. Y ~= YFE |
