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19 Cards in this Set
- Front
- Back
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2 ways of gathering unemployment data
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1-Household survey (calling households)
2-Establishment survey (calling firms) |
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Equation for PV-FV
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FV=PV(1+i)^t
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nominal interest rate=
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nom=real+int. rate
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FOMC
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Federal Open Market Committee
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Chairman of Fed
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Ben Burnanke
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What does the FOMC do?
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-buy/sell bonds
-set reserve requirement -set discount rate |
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Labor Force=
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Employed + Unemployed
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Real Exchange Rate=
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P(domestic
nomER x ---------------- P(foreign) |
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Approaches to calculating GDP
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-
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1
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Expenditure
Y=C+I+G+Nx |
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2
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Income Approach
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3
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Value Added Approach
(Sales revenue-material costs) |
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Y=C+I+G+Nx
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Y=GDP
C=Private consumption I=Private investment G=Government spending Nx=Exports - Imports |
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What kinds of goods count in GDP?
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1) New good
2) Made within borders (even if by foreign company) 3) Final good 4) Within last year |
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Quantity theory of money
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MV=PY
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MV=PY
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M--money supply
V--velocity P--price Y--output (GDP) |
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M1--
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1)Currency
2)Traveler's Checks 3)Checkable Deposits |
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M2--
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1) M1
2) Small-time deposits 3) Money market |
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Discount rate
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Rate the Federal Reserve charges banks to borrow from it
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