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27 Cards in this Set
- Front
- Back
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cross price elasticity
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change in quantity demanded of good1/price of good 2
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elasticity
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change q/mid and q/p
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perfectly competitive
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maximizes when mc = price
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gdp
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c+i+g+nx
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real gdp
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goods valued at price of given year
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deflator
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nominal/real*100
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cpi
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current price of basket/base*100
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inflation
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cpi2-cpi1/cpi1*100
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monopolistic competition
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slightly different products. few sellers
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perfect competition
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identical goods. many sellers
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monopoly
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identical goods.
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labor force
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unemployed and employed
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participation rate
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force/adult population
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unemployment rate
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unemployed/force
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frctional unemployment
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change in demand for services or goods.
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bls
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calculates cpi, unemployment lf
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fderal reserve banks
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12
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real exchange rate
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nominal*domestic price/foreign price
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nominal exchange rate
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currency in terms of another
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quantity theory of money
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mv=py
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nominal interest rate
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real interest + inflation
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fv=pv(1+r)^time
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interest calculating.
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Normative Statement:
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Statements that attempt to say how the world should be.
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positive statement
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statement that describes how the world is
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M1:
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1. Currency
2. Travelers Checks 3. Checkable Deposits |
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M2:
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1. M1 (Currency, Travelers Checks, Checkable Deposits)
2. Small Time Deposits 3. Money Market |
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Discount rate
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The interest rate that the Federal Reserve System charges when banks borrow from it.
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