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21 Cards in this Set
- Front
- Back
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The ____ links the level of employment, the level of the capital stock, energy, and technology to the level of __
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Production function, long run
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Economies that trade with others are ____
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Open Economies
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The Federal Reserve buys bonds in exchange for money in an _____
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Open market operation
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The ___ is the rate arising from normal labor market conditions that involve imperfect information and locational mismatches of workers and jobs.
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natural (or frictional) rate of unemployment
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The ____ is the rate arising from insufficient demand for labor because of insufficient aggregate demand.
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Cyclical rate of unemployment
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The ___ records trade in goods and services among countries as well as transfer payments and investment income.
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Current account
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The __ is the rate arising from a mismatch of the skills of the labor force and the jobs available in the economy.
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Structural rate of unemployment
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The __ records purchases and sales of assets (such as stocks, bond, and land) in one country by residents of another.
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Capital Account, (International Financial Aacount) of the Balance of Payments
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In the ___, firms will supply whatever amount of goods is demanded at the exsisting price.
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Keynesian case (of the aggregage supply curve)
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The ___ links the level of employment to the level of output.
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Production function, short run
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Central banks allow the exchange rate to adjust to equate the supply and demand for foreign currency in a ___
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Flexible Exchange Rate System
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A ___ takes place when the price of foreign currencies is increased by official action in a fixed rate system
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Devaluation
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The components of the ___ are the production function, the mark-up relation, and the Phillips curve
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Aggregate supply curve, short run
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The buying and selling of foreign exchange by the Central Bank is ____
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Intervention
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The ___ is the record of transactions of the residents of a country with the rest of the world.
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Balance of payments
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Two currencies are at ___ when a unit of domestic currency can buy the same basket of goods at home or abroad.
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Purchasing Power Parity
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The ratio of foreign to domestic prices measured in the same currency is the ___
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Real exchange rate
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If exports are greater than imports, the current account is in ___
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Surplus
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A ___ takes place when the price of foreign currencies is decreased by official action in a fixed exchange rate system
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Revaluation
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A currency ___ when, under floating rates, it becomes more expensive in terms of foreign currencies
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Appreciates
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A currency ___ when under floating rates it becomes less expensive in terms of foreign currencies
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Depreciates
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