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21 Cards in this Set

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