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25 Cards in this Set

  • Front
  • Back
How new of a field is Economics
"The Wealth of Nations" by Adam Smith, 1776.
how new a field is macroeconomics?
J.M. Keynes, "The General Theory of Employment, Interest and Money", 1936,
70 Years
In the western Europe and the united states, for how long has the economy mostly consisted of nonagricultural and specialized production, with most people having no farms or other natural resources to fall back on?
Could a peasant family be pushed off of land?
no, peasants had a right to farm the lands where they were born.
Serfs, however, could be denied access to land
did the manor lord tell the peasants what and how to farm?
No, peasants mostly used tradition and personal innovation.
did the manor lord own and control his lands
not really, he had a right to the rent, but couldn't get rid of and sometimes was responsible for the peasants.
In western European feudalism, what traditions worked something like unemployment and social security insurance do today?
the granary
Inheritance of Land
what is the most economic reason for the failure to establish a feudal system in the US?
scarce labor, abundant land.
the owner of land had little value while the owner of labor had much of value.
did the industrial revolution improve the living standards of Europeans?
no, peasants in 1400's actually had it better. They had more a higher real income and much better living conditions.
what two numbers are needed to calculate unemployment rate?
# employed, # unemployed but looking for work.
# unemployed/(#employed+#unemployed)
Gross Domestic Product
total money value of all final goods and services produced in some geographic area over some period of time, usually the production of a country over a year.
Real Gross Domestic Product
total value of goods and services produced, adjusted for inflation.
what two phrases are used to refer to real GDP?
Inflation Adjusted GDP
constant dollar GDP
GDP and real GDP is calculated:
quarterly, but annual figures are more accurate
employment and unemployment is calculated:
semi-official definition of a recession
two quarters (6 months) of declining Real GDP.
our productions in the US is much less than our consumption. How is this possible?
our Imports are much larger than our exports.
what basic componets are included in real GDP?
Consumer goods and services
Investment goods and services
government goods and services
exported goods and services
If we include transfer payments like social security and military payments, how large is government spending in the US?
can GDP show us a change in production?
no, only real GDP can. GDP can be affected by too many other variables.
Cyclical Unemployment:
sales and production are lower and you are laid off
Frictional Unemployment
there are as many employees with job openings as there are unemployed people.
Structural Unemplyment
similar to frictional
Tax lawyers are laid off, most of them keep looking for high paying jobs, but there are none.
when the inflation rate is expexted to vary but in an unpredictable manner, this will:
make potential borrows reluctant to take out loans;
make potential lenders reluctant to make loans;
reduce investment spending
how many households are in the US?
100 million