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11 Cards in this Set
- Front
- Back
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Business Cycle
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Expansion above average growth
Peak Contraction below average Trough |
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Macroeconomics
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Low unemployment
Low inflation High sustained growth Good Range (5-6%) Avg Range (3-4%) |
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GDP
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Gross Domestic Product - total value of all goods produced in US
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Y = C + G + I + (X-M)
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Y=GDP
C=Consumption G=Government Spending I=Investments by business X=Exports M=Imports |
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nominal
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figure/number at one point in time
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Real
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Figures adjusted for inflation
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Percapida
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GDP divided by its population
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LIMITATIONS TO GDP
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Does not take into consideration the distribution of income
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Subprime mortgages
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No interet, no asset
stated income interest only no documentation adjustabel rate mortgage |
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Mortgage restes
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When obtain mortgage, your option is pay low IR or make interets only payments for first few years. At certin point the mortgage becomes due or mortgage rate becomes higher
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Housing Bubble
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Subprime mortgages given to those who were uneledgable for loans and who could not pay them back and caused many forclosures.
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