Terms : Hide Images
| 13993316975 | commodity money | objects that have value in themselves and that are also used as money | 0 | |
| 13993322750 | fiat money | money that has value because the government has ordered that it is an acceptable means to pay debts | 1 | |
| 13993326266 | Three functions of money | medium of exchange, unit of account, store of value | 2 | |
| 13993329687 | medium of exchange | function of money, can make transactions | 3 | |
| 13993339258 | store of value | function of money, can be used to store the value of past services and wealth for long periods of time | 4 | |
| 13993360688 | A unit of account | function of money, measures the real value of something and allows for comparison | 5 | |
| 13993376144 | characteristics of money | portability, durability, divisibility, universal acceptance, difficult to reproduce | 6 | |
| 13993399700 | m1 | currency, demand deposits, traveler's checks, and other checkable deposits | 7 | |
| 13993414682 | m2 | M1 plus savings accounts, certificates of deposit, and other liquid assets | 8 | |
| 13993490348 | Tools of Monetary Policy | reserve requirement, discount rate, open market operations | 9 | |
| 13993524983 | Pigou's wealth effect | when the price level falls, consumers have more purchasing powe | 10 | |
| 13993558339 | keyenes's interest rate effect | as less money is needed for purchases, the interest rate decreases because more money is saved | 11 | |
| 13993596625 | Mundell-Fleming exchange rate | as interest rates fall, due to falling prices, domestic investors invest in foreign banks, as a result of this growth in the international money supply, the value of domestic currency goes down relative to foreign currency, and exports increase | 12 | |
| 13993656685 | aggregate supply | the total amount of goods and services in the economy available at all possible price levels | 13 | |
| 13993674309 | Shifts in aggregate demand curve | Change in price level/inflation Consumer income and wealth increases Higher expectations for economy in the future Expansionary monetary and fiscal policy Favorable exchange rate movement | 14 | |
| 13993680296 | Shifts of the Short-Run Aggregate Supply Curve | 1. changes in size, or quality of labor force 2. changes in quality or quantity of capital stock through investment 3. technological progress and impact of innovation 4. changes in productivity 5. changes in unit wage costs 6. changes in subsidies and taxes 7. changes in inflation expectations | 15 | |
| 13993743373 | agregate demand curve | the conditions surrounding the amount of goods and services demanded | 16 | |
| 13993767683 | long-run aggregate supply curve | the productive resources available to meet demand | 17 | |
| 14006738617 | Shifts in Consumption Function | Change in Household Wealth Change in Interest Rates Change in Expectations change in inflation changes in the general price level | 18 | |
| 14006767983 | changes in investment function | bushiness expectations current growth in demand interest rates tax environment | 19 | |
| 14006800127 | Changes in Net Exports | national income exchange rates relative prices | 20 | |
| 14006837711 | Changes in government spending | fiscal policy state and local pollitics | 21 | |
| 14006847594 | money market graph |  | 22 | |
| 14006857311 | Loanable Funds Graph |  | 23 | |
| 14006865761 | factor market graph |  | 24 | |
| 14006878789 | aggregate supply/demand graph |  | 25 | |
| 14006883657 | Phillips Curve |  | 26 | |
| 14006909749 | Foreign exchange graph |  | 27 | |
| 14006993159 | absolute advantage | the ability to produce a good using fewer inputs than another producer | 28 | |
| 14006998844 | comparative advantage | the ability to produce a good at a lower opportunity cost than another producer | 29 |
