Terms : Hide Images
| 166693298 | Consumption Expenditures | the dollar value of all the goods and services sold to households | |
| 166693299 | Disposable Personal Income (DPI) | the income of households after taxes have been paid | |
| 166693300 | Goverment Expenditures | the dollar value of goods and servies sold to goverements | |
| 166693301 | Gross Domestic Product (GDP) | dollar value of production within a nation's borders | |
| 166693302 | Gross National Product (GNP) | dollar value of production by a country's citizens | |
| 166693303 | Intermediate Sales | sales to firms that will incorporate the item into thier final product | |
| 166693304 | Investement Expenditures | expenditures by businesses on plant and equipment and the change in business inventories | |
| 166693305 | National Income (NI) | the income earned by households and profuits earned by firms after subtracting depreciation and indirect business taxes | |
| 166693306 | National Economic Income (NEA) | the income earne by households adn profits earned by firms after subtracting depreciation and indirect business taxes | |
| 166693307 | Net Exports | exports-imports | |
| 166693308 | Personal Income (PI) | income revieced by household | |
| 166693309 | Real GDP | GDP adjusted for price changes | |
| 166693310 | Underground Economy | all the illegal production of goods and services and legal production that does not pass through markets | |
| 168355201 | Consumer Price Index (CPI) | measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services | |
| 168355202 | Cyclical Unemployment | loss of jobs by indiciduals during a recession and the corresponding slowdow in production | |
| 168355203 | Fisher's Hypothesis | Nominal Interest Rate= Real Interest Rate+Expected Inflation | |
| 168355204 | Frictional Unemployment | state of being out of work because the person is inbetween jobs | |
| 168355205 | GDP Deflator | measure of the level of prices in the economy | |
| 168355206 | Hidden Unemployment | describing those who are able to work but who are not activley seeking employment because they are discouraged about their prospect for finding employment | |
| 168355207 | Inflation | a sustained rise in most prices in the economy | |
| 168355208 | Mean Costs | the misallocation of resources becasue of inflation | |
| 168355209 | Nonacceleratig Inflation Rate of Employment | the full employment rate of unemployment; when employment falls below this rate, inflation accelerates | |
| 168355210 | Structural Unemployment | state of being out of work because the economy is structured or set up to be at a person's disadvantage | |
| 168355211 | Unemployment Rate | the number of unemployed persons divided by the labor force | |
| 168355212 | Aggregate Demand | the deman for all goods and services by all households, businesses, goverements and foreigners | |
| 168355213 | Aggregate Supply | the supply of all goods and services by all producers in the economy | |
| 168355214 | Break- Even Point | poit where the consumption fucntion crosses the 45 degree ray and income equals spending so that savings is zero | |
| 168355215 | Business Cycle | a wave of economic activity comprised of an expansion and resession | |
| 168355216 | Classical Economic Theory | the predorminant paradigm in econoic analysis from about 1800 until 1930, based on Say's Law | |
| 168355217 | Consumption Funtion | the relationship between consumer spending and income | |
| 168355218 | Equilibrium Price Level | the price level that equate aggregate supply and aggregate demand, the average level of prices in the economy | |
| 168355219 | Equilibrium Quantity | the amount of output that results in no shortage of surplus, the amoun of goods and service bought and sold in the economy | |
| 168355220 | Expansion | a sustained improvement in economic activity (upwards portion in the business cycle) | |
| 168355221 | Keynesian Theory | theory that opposes classical theory by emphacizing the short run and focusing on econmies that are operating below full capacity | |
| 168355222 | Marginal Propensity to Consume (MPC) | the idea that given an extra dollar, how much is spent? | |
| 168355223 | Multiplier | an initial change in speding in the economy that will have a magnified, or multiple effect on imcome | |
| 168355224 | Recession | a sustained decline in economic activity | |
| 168355225 | Say's Law | theory that supply creates its own demand | |
| 168355226 | Automatic Stabilizers | goveremnt polocies already in place that promote deficit spending during recessions and surplus budgets during expansions | |
| 168355227 | Crowding Out | the increase in interest rates and subsequesnt decline in spending that occurs when the goverment borrows money to finance a deficit | |
| 168355228 | Deficit | situation that exists when goverment spending exceeds tax revenues | |
| 168355229 | Fiscal Polociy | changes in goverement spending and taxes to fight recessions and inflations | |
| 168355230 | Inflationary Gap | what ovurs wehn the equilibrium quantity of output is above potential output | |
| 168355231 | Phillips Tadeoff | the inverse relationship between inflation and unemployment | |
| 168355232 | Rational Expenditures | the idea that hosueholds and businesses will use all the information avaible to them when making economic decisions | |
| 168355233 | Recessionary Gap | what occurs when the equilbrium quantity of output is bellow potential output | |
| 168355234 | Stagflation | term used to describe the situation when the economy experiances inflation and a recession simultaneously | |
| 168355235 | Surplus | spending by the goveremnt that is less than tax revenues | |
| 169064198 | Certificate of Deposit | debt instrument that is similar to a savings account except the interest rate is slightly greater an dthe deposit cannot be drawn on without penalty | |
| 169064199 | Currency | coins and paper money | |
| 169064200 | Discount Rate | the rate of interest the FED charges when it makes loans to depository intstituions | |
| 169064201 | Excess Reserves | the amount of any deposit that does not have to be held aside and may be used to make loans and buy investements | |
| 169064202 | Federal Reserves | the central bank of the united states | |
| 169064203 | Fait Money | money that is not backed by an precious commodity | |
| 169064204 | Goverment Securities | IOUs that the foverement issues when it borrows money | |
| 169064205 | Liquidity | the ability to turn as asset into cash rapidly and without loss | |
| 169064206 | M1 | currency, transaction accounts, and travelers' checks | |
| 169064207 | M2 | M1 plus savings accounts, certificates of deposit and other liquid assets | |
| 169064208 | Money | anything that society generally accepts in payment for a good or service | |
| 169064209 | Money Multiplier | =1/Reserve Requirement the multiple in which the money supply will change because of a change in bank reserves | |
| 169064210 | Open Market Operations | activities in which the FED buys and sells goveremnt securites in the secondary market | |
| 169064211 | Required Reserves | the amount of any deposit that must be held aside adn not used to make loans or buy investements | |
| 169064212 | Reserve Requirements | the percentage of any depositthat must be help aside and not used to make loans or buy investements | |
| 169064213 | Savings Account | an account at a depository insitituion that earsn interest while the funds are readily availble but cannot be withdrawn with checks | |
| 169064214 | Secondary Market | place where goverement sercurites that have already been issued may be bouoght or sold | |
| 169064215 | Transaction Account | a checking account at a bank or a similar account at some other depository instituion | |
| 169064216 | Board of Governors | executive board of the FED that makes major moentary policy decisions | |
| 169064217 | Demand Magagement Policy | monetary and fiscal polociy | |
| 169064218 | Equation of Exchange | MxV=PxQ (the money supply)(the velocity of the money supply)= (price level)(output) | |
| 169064219 | Fedreal Open Market Committee (FOMC) | a committee withinthe FED that designs and executes the particlars of monetary policy | |
| 169064220 | Monetarist | one who believes that changes inthe money supply have a profound effect on the economy | |
| 169064221 | Monetary Neutrality | polociy in which a change inthe money supply would result ina proportional changein proces while real variables, such as the unemployment rate, would be uneffected | |
| 169064222 | Monetary Polciy | changes in the money supplyto fight recessions or inflations | |
| 169064223 | Money Demand | the amount that housholds and firms want to hold in currency and deposits | |
| 169064224 | Velocity of Money | describing the number of timesthe typical dollar of M1 or M2 is used to make purchaes during a year | |
| 169064225 | Capitol | plant and equipment | |
| 169064226 | Capitol Productivity | the amount of output uslally measured by the percentagechange in real GDP or real GDP per capita | |
| 169064227 | Human Capitol | the skill and knowlegde embodied inthe labor force | |
| 169064228 | Labor Productivity | the amount that can be produced using resources fully and efficently | |
| 169064229 | Productivity | output per unit of input | |
| 169064230 | Total Productivity | the amount of output per unit of all inputs | |
| 169064231 | Appreciation | the increaesof the valuesof a currency in terms of another currency | |
| 169064232 | Balance of Payments | an accounting of the funds that flow into and out of a country comprised of the capital account and the current account | |
| 169064233 | Capital Account | a portion of the balance of payments comprised of foriegn purchases of US assets minus US purchases of foreign assets, plus the change in offical reserves | |
| 169064234 | Closed Economy | a hypothetical economy with no foreign trade | |
| 169064235 | Current Account | a portion of the balance of payments comprised of the trade balance,net investement income and net transfers | |
| 169064236 | Depreciation | the decreaes of the value of currency interms of another currency | |
| 169064237 | Dumping | the practiceof foreign produces selling a product in the domestic market for less that it cost to produce it | |
| 169064238 | Exchange Rate | the valueof one country's currency in termsof another's | |
| 169064239 | Gold Standard | a unit of currency that is equivalent to a stated amount of gold | |
| 169064240 | Import Quota | a limit onthe amount of a product that can be imported | |
| 169064241 | Import Tariff | a tax on a specified imported product | |
| 169064242 | Infant Industires | those industiresthat are jsut getting started, perhaps requiring trade restrictions | |
| 169064243 | Intervention | situation in whcih a nationor group of nations use thier offical resercvces to supply or demand a currency in order to alterthe exchange rate | |
| 169064244 | Mangaged Float | an exchange rate regimewheresupply and demand determineexchangerates with occasionalintervention when warranted | |
| 169064245 | Net Investment Income | amound US citizens earned as interest and dividendsfromabroad minus how much was paid to foreigners in interest and dividends | |
| 169064246 | Net Transfers | amoutn US citizens earned as interest and dividens from abroad minus how much was paid to foreigners in intereest and dividends | |
| 169064247 | Offical Reserves | goverement's hldings of foreign currencies | |
| 169064248 | Open Economy | an economy with forign currencies | |
| 169064249 | Trade Deficit | excessof a nation's imports over its exports | |
| 169064250 | Trade Surplus | excess of a nation's exports over its imports |
