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14 Cards in this Set
- Front
- Back
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Macro Economics Problems to Avoid #1 |
Economic Growth Contraction -Downturn in output, Shrinkingp |
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Macroeconomic Problem to Avoid #2 |
Price Stability Inflation - price goes up, consuming to much, Reduces value of money Deflation- price goes down Hyperinflation- fast up Staginflation- All bad |
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Macroeconomics Problems to Avoid #3 |
Full Employment Unemployment Employment 5% |
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GDP |
Gross Domestic Product -Finished Products -Within Borders -Want 2-4% growth every year |
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C + I + G (x-1) |
C = consumer demand 70% of GDP I = Business Investment 20% of GDP G = Government Spending 33% (X-1) = Trade Defecit |
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1930 Great Depression Solved with |
1946 Employment Act |
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C P I |
Consumer Price Index Monthly changes for goods 1-3% |
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The Buisness Cycle (There’s 4) |
1. Contractionary 2. Trough 3. Expansión 4. Peak |
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Counts Towards GDP |
-Personal Consumption -Gross Private Buisness Investment monies -Factory Equipment maintenance -New factory equipment -Construction of Housing -Unsold Products built in a year
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Counts toward GDP pt. 2 |
Government Spending -Government Purchase Products and Services |
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Counts towards GDP pt 3 |
Net Foreign Factor Imports and Exports |
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Does NOT count towards GDP |
Used goods and second hand goods Gifts or Transfers Stock and Equities |
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Does not count towards GDP pt 2 |
Unreported Business activities reported in CASH Illegal Activities financial transactions between banks and buisness |
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Does NOT count towards GDP pt 3 |
Intermediate goods Family work and Volunteering |
