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61 Cards in this Set
- Front
- Back
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The job report comes out on |
8:30 AM on the first friday of every month |
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6 Key Economic Measures |
Level of income (per capita) Corporate profits, earnings per share Real GDP Unemployment Inflation Interest Rates and Stock Markets |
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Gross |
doesn't account for depreciation |
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Flow vs Stock |
Flow: GDP Stock: value of all the stuff there is |
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3 ways to measure gdp |
expenditure factor income approach value added approach |
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expansion vs recession who is the official arbiter |
2 quarters of growth or decline in real GDP
National Bureau of Economic Research |
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Disinflation |
inflation is positive but decelerating |
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labor input |
labor productivity + hours worked |
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how cleverly we work |
labor productivity |
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Gosplan Economy |
No invisible hand |
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Optimal decision are made at
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the margin |
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to get rich is glorious |
Deng Xiaoping |
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monetary policy |
raise or lower interest rates |
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fiscal policy |
size of government federal taxes/spending |
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real gdp per capita higher in US or china? |
US |
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4 Decades of Booms
5 Deep Slumps
great moderation |
20s, 60s, 80s, 90s
30s, 46-37, 74-75, 82-83, 07-09
85-07 |
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growth rate pre vs post wwii |
less volatile after |
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inflation |
change in average level of prices |
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treasury borrowing rates |
rise late in expansions
plunge in recessions |
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rise in income |
demand curve shifts out |
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rise in price of complement |
demand curve shifts in |
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fall in price of substitute |
demand curve shifts in |
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rise in taste for good |
demand curve shifts out |
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oil extraction is based on |
how much we're willing to pay |
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input prices fall |
supply curve shifts outward |
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productivity lowers |
supply curve shifts inward |
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other possible products rise in price |
supply curve shifts inward |
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future price expectations lower |
supply curve shifts outward |
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Y |
National Income; American companies anywhere in the world |
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final sales |
gdp - inventory investment |
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tax cut |
stronger consumer spending |
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rise in interest rates |
stronger dollar |
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strong spending and strong dollar |
surging imports |
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investment in GDP doesn't include |
financial investments
purchase or sales of exising/used houses |
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government in gdp doesn't include |
social redistriibution projects |
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aggregate expenditure model allows for |
slight deviation from equilibrium with restoring force |
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AE = |
C + I(p) + G + NX |
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45 degree line in AE model |
GDP |
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below 45 degree line |
unplanned inventory rise gdp and jobs decrease |
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5 key drivers of consumption |
disposable income (current and anticipated) wealth interest rates consumer confidence |
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autonomous real consumption expenditure |
what you spend with no income set by consumer confidence |
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disposible income |
income + transfer payments - personal taxes |
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marginal propensity to consume |
change in consumption / change in income |
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add to autonomous consumtion |
planned investment government purchases net exports |
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three uses for price index |
separate price changes from output shifts
guard against deflationaryr/ accelerating inflation pressures
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CPI |
consumer price index basket of goods in base year vs current year CPI base year = 100 |
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Core CPI |
remove food and energy |
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played a role in great recession |
owner's equivalent rent |
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4 problems with AE model |
only looks at real economy swings production and employment adjustment capital is limited doesn't take account of inflationary swings |
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job report |
Bureau of Labor and Statistics 1st friday of each month household survey payroll suvey |
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U6 |
includes underemployment |
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JOLT's survey |
Gross hires and seperations |
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TA full name and section number |
Ryan Bush
Section 2 |
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Okun's Law |
ΔY = LTSG - ΔU |
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LTSG |
the maintainable delta GDP
just enough jobs created to maintain population growth
labor force + labor productivity |
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USA labor force growth USA labor productivity growth USA LTSG All per year |
0.8
1.3
2.1 |
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Okun Coefficient > 1 for 2 reasons |
change in unemployment multiplied by 2
pop in productivity over LGST |
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labor productivity is |
pro-cyclical |
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2/3 of GDP |
consumption |
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core (not food or energy) makes up ___ of CPI |
75% |
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consumption in china is _____ of GDP |
1/3 |
