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| 8716154498 | Economics | The study of how to allocate scarce resources in a world of unlimited wants | 0 | |
| 8716154499 | Macro economics | The study of the whole economy and issues that affect most of society | 1 | |
| 8716154500 | Micro economics | economic field that studies decision making at firms, households, and individual level | 2 | |
| 8716154501 | Gross Domestic Product | Total value of all final goods and services produced in a year within that country | 3 | |
| 8716154502 | National Income | Sum of income earned by the factors of production owned by a country's citizens | 4 | |
| 8716154503 | Personal Income | Money received by households before income taxes are subtracted | 5 | |
| 8716154504 | Disposable Income | Personal income - personal taxes | 6 | |
| 8716154505 | Expenditure Approach | GDP = C + I + G + (X-M) | 7 | |
| 8716154506 | Income Approach | Depreciation + National income | 8 | |
| 8716154507 | Depreciation | The decline in the value of a currency | 9 | |
| 8716154508 | Subsidy Payments | Made by the government to farmers, are part of the farmers' income but are not made in exchange for goods and services (not part of the GDP) | 10 | |
| 8716154509 | Net Foreign Income | The difference between the aggregate amount that a country's citizens and companies earn abroad, and the aggregate amount that foreign citizens and overseas companies earn in that country | 11 | |
| 8716154510 | Net Domestic Product | How much output is leftover for consumption, additions to capital stock (GDP - depreciation) | 12 | |
| 8716154511 | Inflation | Sustained increase in the overall price level | 13 | |
| 8716154512 | Deflation | Sustained decrease in the general price level | 14 | |
| 8716154513 | Nominal wage | dollar amount stated on your pay check | 15 | |
| 8716154514 | Real wage | Actual purchase power of the dollars | 16 | |
| 8716154515 | Money Illusion | Refers to the tendency of people to think of currency in nominal, rather than real, terms | 17 | |
| 8716154516 | Menu Cost | Changing of price listings to keep up with inflation | 18 | |
| 8716154517 | Consumer Price Index | A market basket of goods showing the variation in prices paid by typical consumers for retail goods and other items | 19 | |
| 8716154518 | Producer Price Index | A weighted index of prices measured at the wholesale, or producer level | 20 | |
| 8716154519 | Gross Domestic Product Deflator | A measure of price inflation (cost of current year market basket at current prices / cost of current year market basket at base year prices * 100) | 21 | |
| 8716154520 | Unemployment | Labor force participant must be willing and able to work, and must have sought after work in the past 4 weeks in order to be considered....... | 22 | |
| 8716154521 | Labor Force Participation Rate | The number in the labor force divided by the working age population | 23 | |
| 8716154522 | Unemployment Rate | The number of unemployed workers divided by the number in the labor force | 24 | |
| 8716154523 | Frictional Unemployment | New labor force entrants and workers who are temporarily between jobs | 25 | |
| 8716154524 | Structural Unemployment | unemployment resulting from industrial reorganization (a skills mismatch), typically due to technological change | 26 | |
| 8716154525 | Cyclical Unemployment | Unemployment that results from downturns in the business cycle | 27 | |
| 8716154526 | Seasonal Unemployment | Changes in hiring patterns due to the time of year | 28 | |
| 8716154527 | Discouraged Worker | An individual who is willing and able to work but stops trying (not counted) | 29 | |
| 8716154528 | Dishonest Worker | An individual who claims to be unemployed to received unemployment benefits (bias the unemployment figures up) | 30 | |
| 8716154529 | Natural Rate of Unemployment | The typical rate of unemployment in a normally functioning economy (sum of frictional plus structural) | 31 | |
| 8716154530 | Full Employment | Level of employment that corresponds with the natural rate of unemployment | 32 | |
| 8716154531 | Okun's Law | For every 1% increase in unemployment above the natural rate, output falls by 2-3% | 33 | |
| 8716154532 | Aggregate Suppy | The total value of output producers are willing and able to supply at alternative price levels in a given time period | 34 | |
| 8716154533 | Aggregate Demand | The total demand for goods and services in the economy | 35 | |
| 8716154534 | Price Level | Average level of all prices | 36 | |
| 8716154535 | Real Factor Prices | Buying power of payments to factors of production | 37 | |
| 8716154536 | Long Run Aggregate Supply | Represents the relationship between the price level and output in the long-run (vertical) | 38 | |
| 8716154537 | Classical Economists | believe markets can be self correcting | 39 | |
| 8716154538 | Say's Law | Supply creates its own demand (laissez-faire) | 40 | |
| 8716154539 | Keynesian Economists | Wages don't adjust to match changes in price levels, and instead will persist until the government steps in (sticky wages explain why there is unemployment and the economy doesn't self-adjust) | 41 | |
| 8716154540 | Rational Expectations | Suggests that people learn to anticipate government policies designed to influence the economy, making policies ineffectual | 42 | |
| 8716154541 | Aggregate Expenditure | The total amount that firms and households plan to spend on goods and services at each level of income | 43 | |
| 8716154542 | Real wealth/Real Balances Effect | If the price level increases, the value of assets will fall and consumers will purchase fewer goods | 44 | |
| 8716154543 | Foreign Trade Effect | If the price level in one country increases, the prices of imports from other countries become less expensive, causing more imports and less exports, which decreases GDP | 45 | |
| 8716154544 | Interest Rate Effect | When the price level increases, real quantity of money (purchasing power) decreases | 46 | |
| 8716154545 | Causes for Shift in Aggregate Demand | Consumption increases, investment increases, government carries out expansionary policy, net exports increase | 47 | |
| 8716154546 | Equilibrium at AD and AS | An economic state in an economy where the quantity of aggregate demand equals the quantity of aggregate supply | 48 | |
| 8716154547 | Cost Push Inflation | When we experience rising prices due to higher costs of production and higher costs of raw materials. Causing AS to decrease | 49 | |
| 8716154548 | Demand Pull Inflation | When aggregate demand in an economy outpaces aggregate supply. AD increases | 50 | |
| 8716154549 | Stagflation | Rising prices and high unemployment | 51 | |
| 8716154550 | Creeping Inflation | Inflation that remains steady for a long period at a low rate | 52 | |
| 8716154551 | Galloping Inflation | Unsteady inflation that exceeds 10% per year and grows monthly | 53 | |
| 8716154552 | Hyperinflation | Rapid price increase in excess of 50% per year | 54 | |
| 8716154553 | Expenditure/Spending Multiplier | The number by which the initial amount of new spending should be multiplied to find the total resulting increase in real GDP... 1/MPS | 55 | |
| 8716154554 | MPC (Marginal Propensity to Consume) | The amount by which consumption increases for every additional dollar of real income | 56 | |
| 8716154555 | MPS (Marginal Propensity to Save) | The fraction of each additional dollar of income that is saved | 57 | |
| 8716154556 | Recessionary Gap | The amount by which equilibrium real GDP would have to increase to reach full employment | 58 | |
| 8716154557 | Inflationary Gap | The amount by which equilibrium real GDP would have to decrease to reach full employment | 59 | |
| 8716154558 | Fiscal policy | The means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. | 60 | |
| 8716154559 | Expansionary Fiscal Policy | Involved increasing government purchases, increasing transfers, or decreasing taxes (shifts AD right and boost real GDP) | 61 | |
| 8716154560 | Contractionary Fiscal Policy | Involves decreasing purchases, decreasing transfers or increasing taxes (shift AD left and decrease real GDP) | 62 | |
| 8716154561 | Government Spending Multiplier | 1 / MPS | 63 | |
| 8716154562 | Taxation Multiplier | - MPC / MPS | 64 | |
| 8716154563 | Balanced Budget Multiplier | Gov't multiplier > tax multiplier | 65 | |
| 8716154564 | Crowding Out | A decrease in real investment stemming from higher interest rates (r) due to government purchases / borrowing | 66 | |
| 8716154565 | Partial Crowding Out | When the effect of crowded-out investment on real GDP is most likely smaller than the initial increase in real GDP | 67 | |
| 8716154566 | Complete Crowding Out | When the decrease in investment eliminates the entire boost in real GDP from increased purchases | 68 | |
| 8716154567 | Open Economy | An economy in which there are economic activities between the domestic community and outside countries | 69 | |
| 8716154568 | Closed Economy | A self-sufficient, meaning no imports are brought in and no exports are sent out, the goal being to provide consumers with everything they need from within the economy's borders | 70 | |
| 8716154569 | Loanable Funds Market | The sum total of all the money in private banks that people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption | 71 | |
| 8716154570 | Money Market | The Federal Reserves manipulates the money supply in this market to change interest rates. | 72 | |
| 8716154571 | Supply-side Economist | A macroeconomic theory that argues economic growth can be most effectively created by investing in capital and by lowering barriers on the production of goods and services.. ex: lowering corporate taxes | 73 | |
| 8716154572 | Monetary Policy | The use of credit controls by the federal reserve to influence interest rates, inflation exchange rates, unemployment, and real GDP | 74 | |
| 8716154573 | Expansionary/easy money policy | Traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding | 75 | |
| 8716154574 | Contractionary/tight money policy | Refers to either a reduction in government spending, particularly deficit spending, or a reduction in the rate of monetary expansion by a central bank | 76 | |
| 8716154575 | Money | Anything that is commonly accepted as a means of payment for goods and services | 77 | |
| 8716154576 | Commodity Money | Has value beyond its usefulness as money | 78 | |
| 8716154577 | Fiat Money | Money that has no intrinsic value | 79 | |
| 8716154578 | Medium of Exchange | An intermediary instrument used to facilitate the sale, purchase or trade of goods between parties | 80 | |
| 8716154579 | Double Coincidence of Wants | Person who owns the goods or services you want has a desire for what you have to borrow with | 81 | |
| 8716154580 | Store of Value | A nonperishable item that will hold the value of past production into the future | 82 | |
| 8716154581 | Unit of Account | Provides a standard unit for price listings and comparisons | 83 | |
| 8716154582 | Money Supply | The total amount of money in circulation or in existence in a country | 84 | |
| 8716154583 | Liquidity | Includes forms of money that are harder and harder to gain access to and spend quickly | 85 | |
| 8716154584 | Federal Reserve | The central bank of the United States and the most powerful financial institution in the world | 86 | |
| 8716154585 | M1 | The sum of coin and paper money plus checking deposits and travelers' checks | 87 | |
| 8716154586 | M2 | M1 + saving deposits, small-time deposits, money market mutual funds, and eurodollar deposits | 88 | |
| 8716154587 | M3 | M2 + large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets | 89 | |
| 8716154588 | Fractional Reserve Banking | Only a fraction of total deposits are held on reserve and the rest is lent out | 90 | |
| 8716154589 | Required Reserve Ratio | bank reserves / total deposits | 91 | |
| 8716154590 | Balance Sheet | A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period | 92 | |
| 8716154591 | T Account | An informal term for a set of financial records that use double-entry bookkeeping | 93 | |
| 8716154592 | Asset | A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit | 94 | |
| 8716154593 | Liabilities | A company's financial debt or obligations that arise during the course of its business operations | 95 | |
| 8716154594 | Money Creation | The process by which the money supply of a country or a monetary region is increased when banks make loans | 96 | |
| 8716154595 | Money Multiplier | The total amount of deposits resulting from an initial deposit that is ultimately held as reserves 1/RR | 97 | |
| 8716154596 | Discount Rate | The interest rate banks pay to borrow money from the Fed | 98 | |
| 8716154597 | Open Market Operations | Involve the Fed's purchase and sale of government securities / bonds | 99 | |
| 8716154598 | Monetarist | An economist who holds the strong belief that the economy's performance is determined almost entirely by changes in the money supply | 100 | |
| 8716154599 | Equation of Exchange | MV = PQ M = Money supply V = Velocity of money P = Average price Q = Quantity of goods and services sold in period 'Q' | 101 | |
| 8716154600 | Velocity of Money | Number of times per period that the average dollar is spent on final goods and services | 102 | |
| 8716154601 | Quantity Theory of Money | Velocity of money and quantity of goods and services sold in period Q are stable, meaning that an increase in the money supply will have no other effect other than to increase the price level | 103 | |
| 8716154602 | Real Interest Rate | Nominal interest rate - anticipated inflation | 104 | |
| 8716154603 | Nominal Interest Rate | real interest rate + anticipated inflation | 105 | |
| 8716154604 | Natural Rate of Interest | The rate at which real GDP is growing at its trend rate, and inflation is stable | 106 | |
| 8716154605 | Fisher Effect | Market participants can predict that the Fed (e.g.) will counter inflation by reducing the money supply growth, and anticipated inflation and nominal interest rates will begin to fall instead of rise | 107 | |
| 9612411005 | Phillips Curve | graphical device that shows the relationship between inflation and the unemployment rate | 108 | |
| 9612427168 | Budget deficit | exists when government spending exceeds the revenue collected from taxes | 109 | |
| 9612434010 | Budget Surplus | exists when the revenue collected from taxes exceeds government spending | 110 | |
| 9612446341 | contractionary fiscal policy | decreases in government spending or an increase in taxes meant to shift AD to the left | 111 | |
| 9612463341 | Expansionary fiscal policy | increases in government spending or decrease in taxes meant to increase AD | 112 | |
| 9612484636 | Transaction demand | the amount of money held in order to make transactions | 113 | |
| 9612501637 | Asset demand | the amount of money demanded as an asset | 114 | |
| 9612517633 | Federal funds rate | interest rate paid on short term loans made from one bank to another | 115 | |
| 9612531455 | Capital account | this account shows the flow of investment on real or financial assets between a nation and foreigners | 116 | |
| 9612537591 | Current Account | shows import and export payments of both goods and services | 117 | |
| 9612553558 | Appreciating | when the value of a currency is rising relative to another currency | 118 | |
| 9612566889 | Fractional reserve banking system | a system in which only a fraction of the total money deposited in banks is held in reserve as currency | 119 | |
| 9612598041 | intermediate goods | goods that require further modifications before they are ready for final use, ex: steel used to produce new Harley | 120 | |
| 9612609168 | Final goods | goods that are ready for their final use by consumers and firms, ex: a new Harley Davidson motorcycle | 121 | |
| 9612640435 | Normal goods | a good for which higher income increases demand | 122 | |
| 9612645301 | Inferior goods | a good for which higher income decreases demand | 123 | |
| 9612655516 | ceteris paribus | hold all other variables constant | 124 | |
| 9612667791 | Economic growth | occurs when an economy's production possibilities increase | 125 | |
| 9612676720 | Productive efficiency | production of maximum output and the least possible cost | 126 | |
| 9612683150 | Allocative efficiency | production of the combination of goods and services most desired by a society MB=MC | 127 | |
| 9612702427 | opportunity cost | the value of the next high alternative given up to pursue a course of action | 128 | |
| 9612713931 | Resources : factors of production | land, labor, capital & entrepreneurial ability | 129 | |
| 9612720518 | comparative advantage | when a country can produce a good at a lower opportunity cost that all other producers | 130 | |
| 9612731505 | absolute advantage | exists if a producer can produce more of a good that all other producers | 131 |
