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30 Cards in this Set
- Front
- Back
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Evaluating economics on a large scale.
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Macroeconomics
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Total behavior of producers, consumers, and goverments.
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Aggregate Behavior
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Prices that do not always adjust rapidly to maintain equality between quantity supplied and quanity demanded...Prices that don't move smoothly in the Macroeconomy. They are less likely to go down.
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Sticky Prices
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What are the three Macroeconomic Issues?
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Output growth, unemployment, and inflation/deflation
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How do you track Output Growth? *The cycle of short-term ups and downs in the economy.
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Business Cycle
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The total quantity of goods and services produced in an economy in a given period.
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Aggregate output
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A period during which aggregate output declines. Conventionally, a period in which aggregate output declines for two consecutive quarters.
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Recession
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A prolonged and deep recession.
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Depression
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The period in the business cycle from a trough up to a peak during which output and employment grow.
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expansion or boom
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The period in the business cycle from a peak down to a trough during which output and employment fall.
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Contraction, recession, or slump.
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Not using resourses to full potential.
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Unemployment.
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As resources become fully employed, price goes ___
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up
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As inflation gets greater we buy less and fall into a ___
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contraction
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An increas e in the overall price level/ decrease in the value of money
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inflation
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A decrease in the overall price level
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Deflation
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With deflation, you can run into ___ ___.
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Sprial Down
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Anything where exchange is taking place.
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Market
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What are the three types of markets?
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Goods and Services, Labor, Money/Financial
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Market in which all the products are made
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Goods and Services
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what is the incentive for the goods and services market?
Ex: make product for more than it costs |
Profit
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Market for human capital/workers
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Labor
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What is the incentive for the Labor Market?
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Wages/salaries....Employee compensation
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Market that leads to more exchange which leads to more output
Ex: households puchasing stock and bonds from firms |
Money/financial market
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What is the incentive for the money and/financial market?
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gaining interest
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The price when borrowing money
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interest
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Government policies concerning taxes and Spendng
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Fiscal Policy
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The tools used by the federal reserve to control the quantity of money, which in turn affects interest rates
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monetary policy
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If government doesn't do this products demand would drop and price would decrease
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consumption
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If government didn't do this, or stopped, the supply would be less and cause prices to go up.
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production
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Role of government to oversee activites---rules
ex: labels on cans |
regulation
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