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9 Cards in this Set
- Front
- Back
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Monetary Policy
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A Fed conducts the nation's monetary policy by changing interest rates and adjusting the quantity of money
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Core Inflation Rate
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A Measure of the inflation rate that excludes volatile prices in an attempt to reveal the underlying inflation trend
pg 121 also The Fed's operational guide is the rate of increase in the core PCE deflator, which is the PCE deflator excluding food and fuel prices. pg 349 |
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Federal Funds Rate
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The interest rate banks change each other on overnight loans
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Aggregate Planned Expenditure
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The sum of
planned consumption expenditure, +planned investment, +planned government expenditure on goods and services, +And. Planned Exports - Planned Imports |
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Autonomous Expenditure
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The sum of those components of Aggregate Planned Expenditure that are not influenced by GDP.
=Sum of: Investment Government Expenditure Exports and the autonomous parts of consumption expenditure and imports |
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Consumption Function
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The relationship between consumption expenditure and disposable income, other things remaining the same.
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Disposable Income
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Aggregate Income minus taxes plus transfer payments.
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Equilibrium Expenditure
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The level of Aggregate expenditure that occurs when aggregate planned expenditure equals real GDP.
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Induced Expenditure
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The sum of the components of Aggregate Planned Expenditure that vary with real GDP.
=Consumption expenditure - imports. pg270 |
