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17 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Determinants of supply
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Resource prices
Technology Taxes and subsidies Price expectations Price of other goods Number of suppliers |
Rttppn
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Determinants of demand
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Number of buyers
Income Price Expectations Price of supplement goods Information Taste |
nippit
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Non-Income Determinants of Investment and Non-Income Determinants of Consumption
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Consumer indebtedness
Expectations Wealth Taxes |
cewt
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Factors that shift the investment curve and Factors that Shift Investment Demand
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Business taxes
Acquisition and maintenance cost of capital Technological change Expectations Stock of capitol on hand |
bates
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Volatility of Investment
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Durability of capitol
Irregularity of Innovation Variability of expectations |
div
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Short comings of GPD
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1)use to compare to other countries
2)misses underground economies 3)doesn’t measure non-market transactions 4)doesn’t measure improved product quality 5)doesn’t measure well being 6)doesn’t count externalities 7)contribution and distribution of goods |
7 sins
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Factors that Effect Xn
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Prosperity abroad
Tariffs (taxes on imports) Exchange rates |
pet
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Underlying Reasons for Aggregate Demand
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Foreign Purchases Affect
Interest Rate Affect Real Balances Affect |
Fir
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Determinants of Aggregate Demand
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Changes in consumer Spending
Changes in Investment Changes in Net exports Changes in Government spending |
Sing
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Determinants of Aggregate Supply
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Business taxes and subsidies*
Changes in productivity* Government regulations Input prices* Market power* |
bcgim
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Determinants of Long Run As
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Technology
Labor force* Capital Resources Productivity and efficiency |
TLCRP
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Problems with Fiscal Policies
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Operational lag
Administrative lag Reactionary Lag |
oar
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Functions of Money
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Store of value
Unit of value Medium of exchange |
sum
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Value of Money
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Acceptability
Its legal tender Relative Scarcity |
air
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Reasons Money Supply is Managed
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Price level stability
Facilitate business Promote Full employment Economic growth |
pfpe
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Feds Function
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1) Issues currency
2) Holds required reserves 3) Lends money to banks 4) Handles all check clearances 5) Fiscal agent for the government 6) Supervises member banks 7) Regulates the supply of money |
7 virtues
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Tools of Monetary Policy
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Reserve ratio
Open market operations Discount rate |
rod
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