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39 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is macro? |
-involves overall aggregate of an economy -GDP -large scale/perspective |
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What is micro? |
-involves a specific industry -studies indiv. firms, markets, households -disaggregated data |
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Disinflation |
prices are still rising, but more slowly |
Deceleration |
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Deflation |
prices are falling |
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Inflation |
Prices are rising |
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In currency 100% increase = ??? decline |
50% |
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Seasonally adjusted data |
Seasonal fluctuations removed from data |
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NSA |
not seasonally adjusted |
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SA |
seasonally adjusted |
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If NGDP & RGDP are close together, inflation is... |
low |
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Real wage = |
nominal wage - change in prices (i.e. inflation/deflation) |
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GDP = |
C + I + G + X - Z |
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RGDP = |
(NGDP/GDP p def.) 100 |
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Jobless recovery |
GDP grows but unemplyment does not improve because no new jobs were created |
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What does GDP measure? |
the value of NEW, FINAL goods & services produced by an economy within a given time period |
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Ways of measuring GDP |
- expenditures approach - factor income approach - value-added approach |
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GNP = |
GDP - investment income paid to non-residents (e.g. bonds) + investment income earned by residents abroad |
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If GNP is higher than GDP... |
A country is powerful - it owns part of other countries & invests in foreign countries/companies |
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If GDP rises but GNP is stagnant.... |
it suggests foreign takeover of companies |
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Do most nations emphasize GNP or GDP? |
GDP |
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What is MPC? |
Marginal propensity to consume - proportion of each additional $ of disposable income that is spent. *between 0 & 1 |
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What is the consumption function? |
C = a + bYd |
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If MPC exceeds 1...... |
households are dissaving |
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What is autonomous consumption? |
spending on necessities (eg food) |
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What is MPS? |
Marginal propensity to save |
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MPC + MPS = |
1 |
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MPT is.... |
Marginal propensity to tax - proportion of each $ of GDI which is taxed *between 0 & 1 |
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G is..... |
Gov't spending |
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To find budget status... |
Tn - G |
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If Tn - G is -greater than 0 -equal to 0 -less than 0 this means..... |
-budget surplus -balanced budget -budget deficit |
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Taxes can be.....
(hint: P, P, R) |
Proportional, Progressive, Regressive
(i.e. rich pay more, equal %, poor pay more based on income %) |
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Z |
Imports |
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C |
Consumption |
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S |
Savings |
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Y |
net domestic income |
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Ig |
Gross investment |
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G |
Gov't spending |
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What type of taxes are GST & PST? |
regressive |
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Employed |
Ppl being paid for 1hr + of work, sick leave, on strike, on holiday |
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