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20 Cards in this Set
- Front
- Back
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What are the goals of Macroeconomics?
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To create price stability (low and stable inflation rate) high emplyment, high and sustained economic growth
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What are some of the policies associated with Macroeconomics.
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Fiscal Policy and Monetary Policy
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What is CPI?
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Consumer Price Index: A widely cited index number for the price level; the weighted average of prices of a specific set of goods and services purchased by a typical household.
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How do u Figure CPI?
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CPI of the later year - CPI of the ealier year over CPI of the earlier year...all that X 100
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What is Inflation?
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An increase in the price level.
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What is Real Income?
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Nominal Income adjusted for price changes.
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What is Nominal Income?
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The Current dollar amount of a person's income.
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How do you calculate real income?
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Nominal income divded by CPI times 100
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The labor force is made up of what two groups?
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Employed(those already working) and the Unemployed(those who ar not working now but could and would if job was available.)
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How do you calculate unemployment rate?
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Nuber of unemployed divided by the Civilian labor force all that times 100
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what is Frictional Unemployment?
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Caused by frictions in the economy such as info problems, worker or labor mobility (unemployment between jobs)
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what is structural unemployment?
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Caused by structural changes in the economy due to technological changes AkA: Mismatched unemployment
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what is cyclical unemployment?
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casued by declining demand for goods during recessions.
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what is natural unemployment?
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frictional unemploy. plus structural unemploy.
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what is full employment?
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when actual unemployment = natural unemployment
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What is GDP?
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Gross Domestic Product: the total market value of final goods and services produced domestically over one year.
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what does GDP omit?
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1.)Intermediate group: things like ink and paper in a book
2.)None market goods 3.)Underground activities ect... |
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what is the value added method?
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every process the product goes through is taxed and added on...until it gets to the buyer
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what is Expenditure method?
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GDP=consumption+investment+govt. purchases+net exports
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What is income method?
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GDP=Domestic Income+ Indirect business taxes +Capitol Consumption allowance(AKA depreciation)
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