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32 Cards in this Set
- Front
- Back
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Sticky Prices
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Prices that do not adjust quickly to meet supply-demand curve projections
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national income and product accounts
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Macroeconomic analysis compiled by the BEA.
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GDP
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Total market value of a country's output within a certain time frame.
GDP=C+I+G+(EX-IM) |
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NNP
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Net national product
GNP-Depreciation |
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National Income
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NNP-statistical discrepancy
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Real GDP
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GDP measured outside of the dollar value.
Calculated by measuring the change in nominal GDP by using the same price in a base year. This is done with two adjacent base years and the average is taken between the two percentages. |
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labor force
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employed+unemployed
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unemployment rate
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unemployed/(employed+unemployed)
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frictional unemployment
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Portion of unemployment due to normal working of the labor market.
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structural unemployment
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Portion of unemployment due to changes in the structure of the economy that result in a significant loss of jobs in certain industries.
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natural rate of unemployment
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frictional unemployment+structural unemployment
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cyclical unemployment
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increase in unemployment that occurs during recessions and depressions
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aggregate output
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Y; total output of nation, also equal to aggregate income
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consumption function
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consumption as a function of y, slope equation being equal to C=a+by
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MPC
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the slope of the consumption function
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Aggregate saving
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S; S=Y-C
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MPS
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MPC+MPS=1
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Planned investment
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Ip; investment the firm plans to make
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Actual investment
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Ia; actual investment made.
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Planned Aggregate Expenditure
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AE=C+I
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Equilibrium
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Y=AE, Y=C+Ip, S=Ip, S+T=Ip+G
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multiplier
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1/1-MPC
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net taxes
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T; collection of taxes and payment of transfer payments
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disposable income
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Yd=Y-T, Y=C+S+T
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AE with government
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AE=C+I+G
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budget deficit
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G-T
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consumption function with taxes
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C=a+bYd or C=a+bY-bT
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Equilibrium with government
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Y=C+I+G or intersection of the AE curve and 45 degree line
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AE curve
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consumption function + I+G
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government spending multiplier
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1/MPS
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tax multiplier
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- (MPC/MPS)
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balanced-budget multiplier
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1
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