Principles Of Macroeconomics

Front 1

Measures the totoal market value of all final goods and services produced in the domestic economy during a one-year period; It is the product of the quatity of goods and services produced in their respective prices.

Back 1

Gross Domestic Product Or GDP

Front 2

Meausres the relationship between prices for a given year and prices for a selected (base) year.

Back 2

Price index

Front 3

is a price index found by dividing the nominal GDP by real GDP and then multiplying by 100.

Back 3

GDP Deplator

Front 4

is a measure of changes in prices for aggregate output realtive to prices that existed in the base year ysed to calculate real GDP.

Back 4

GDP Deplator

Front 5

is an action taken by government to impacts aggregate emand to moderate the expansion and contraction phases of the business cycle.

Back 5

Stabilization policy

Front 6

aims to stabilize econmic activity by controlling the money supply or interest rate while fiscal policy utilizes a change in tax rates and/or the level of government spending for the same objective.

Back 6

Monetary policy

Front 7

exists when there is a sustained increase in the price level

Back 7

inflation

Front 8

is concerned with the level of output of goods and services, genreal level of prices and the growth of realoutput

Back 8

macroeconomics.

Front 9

when does real GDP increases

Back 9

when there is an increase in the output of goods and services

Front 10

Ceteris paribus means that

Back 10

other factors are held constant

Front 11

assumes that prices and wages do not adjust immediately to a change in aggregate supply and/or aggreage demand

Back 11

Keynesian model