| 13800091915 | GDP | the dollar value of all final goods and services produced within a country's borders in a given year | | 0 |
| 13800097077 | GDP per capita | GDP divided by population | | 1 |
| 13800100875 | intermediate goods | goods used in the production of final goods | | 2 |
| 13800113468 | Not included in GDP | - intermediate goods and services
- inputs
- used goods
- financial assets like stocks and bonds
- foreign-produced goods and services | | 3 |
| 13800125384 | GDP calculation expenditure approach | Y= C+I+G+(X-IM)
GDP= Private consumption+ Investment+ Government+(Exports-Imports) | | 4 |
| 13800135529 | Nominal GDP | GDP not adjusted for inflation | | 5 |
| 13800140958 | real GDP | GDP adjusted for inflation | | 6 |
| 13800151031 | unemployment | people actively looking for a job | | 7 |
| 13800157478 | unemployment rate | the percentage of the labor force that is unemployed | | 8 |
| 13800163747 | frictional unemployment | unemployment that occurs when people take time to find a job/between jobs | | 9 |
| 13800167475 | structural unemployment | unemployment that occurs when a workers skills are obsolete | | 10 |
| 13800183888 | cyclical unemployment | unemployment that rises during economic downturns and falls when the economy improves | | 11 |
| 13800190397 | natural rate of unemployment | frictional unemployment + structural unemployment | | 12 |
| 13800197034 | full employment output | the real GDP created when there is no cyclical unemployment | | 13 |
| 13800197035 | inflation | prices rise over time | | 14 |
| 13800201010 | Disinflation | prices increase at slower rates | | 15 |
| 13800212233 | people hurt by inflation | lenders with fixed interest rates, people with fixed incomes, savers | | 16 |
| 13800219925 | people helped by inflation | -borrowers
-a business where the price of the product increases faster than the price of resources | | 17 |
| 13800224141 | nominal wage | not adjusted for inflation | | 18 |
| 13800228999 | real wage | adjusted for inflation | | 19 |
| 13800288413 | inflation rate | percent change in prices year to year | | 20 |
| 13800327626 | price indices | index numbers assigned to each year that show how prices have changed relative to a specific base year | | 21 |
| 13800407798 | consumer price index | price of market basket divided by price in base year, times 100 | | 22 |
| 13800472189 | 3 causes of inflation | 1. The Government Prints TOO MUCH
Money (The Quantity Theory)
2. DEMAND-PULL INFLATION
3. COST-PUSH INFLATION | | 23 |
| 13800493597 | velocity of money | the average number of times each dollar in the money supply is used to purchase goods and services included in GDP | | 24 |
| 13800511116 | quantity theory of money | MV=PY | | 25 |
| 13800606583 | aggregate demand | all the goods and services (real GDP) that buyers are willing and able to purchase at different price levels | | 26 |
| 13800868199 | Shifters of Aggregate Demand | anything that affects C,I,G,Xnet | | 27 |
| 13800888615 | aggregate supply | the amount of goods and services that firms will produce in an economy at different price levels | | 28 |
| 13800894232 | short-run aggregate supply curve | wages and resource prices will not increase as price level increases | | 29 |
| 13800904536 | long-run aggregate supply curve | wages and resource prices will increase as price level increases | | 30 |
| 13800920697 | Shifters of Aggregate Supply | 1. Resource Prices or inflationary expectations
2. Actions of the Government (ex: taxes, regulations)
3. Productivity | | 31 |
| 13800937305 | AD/AS at full employment | |  | 32 |
| 13800943164 | AD/AS with inflationary gap | |  | 33 |
| 13800947193 | AD/AS with recessionary gap | |  | 34 |
| 13800954442 | phillips curve | a curve that shows the short-run trade-off between inflation and unemployment |  | 35 |
| 13800963477 | when aggregate supply shifts... | short run phillips curve shifts opposite way | | 36 |
| 13800969118 | when aggregate demand shifts... | movement along the short run phillips curve occurs | | 37 |
| 13800989524 | fiscal policy | actions by congress to stabilize the economy | | 38 |
| 13801012312 | discretionary fiscal policy | congress passes a new bill or law | | 39 |
| 13801018945 | non-discretionary fiscal policy | Permanent spending or taxation laws enacted to work counter cyclically to stabilize the economy | | 40 |
| 13801027744 | contractionary fiscal policy | decrease government spending or increase taxes | | 41 |
| 13801048970 | expansionary fiscal policy | increase government spending or decrease taxes | | 42 |
| 13801055650 | autonomous consumption | income used for necessities | | 43 |
| 13801064548 | disposable income | income (after taxes) that is available to you for saving or spending | | 44 |
| 13801069040 | dissaving | income is less than autonomous spending | | 45 |
| 13801082201 | the multiplier affect | shows how spending is magnified in an economy | | 46 |
| 13801093072 | Marginal Propensity to Consume (MPC) | change in consumption divided by change in income | | 47 |
| 13801100942 | Marginal Propensity to Save (MPS) | change in savings divided by change in income | | 48 |
| 13801117200 | MPC + MPS = | 1 | | 49 |
| 13801120809 | spending multiplier | 1/MPS | | 50 |
| 13801124576 | Tax Multiplier | MPC/MPS | | 51 |
| 13801130390 | crowding out effect | when government deficit spends, the demand for loanable funds increases, causing interest rates to rise and crowding out other investors, thus decreasing investment. | | 52 |
| 13801155768 | barter system | a system of exchange in which goods or services are traded directly for other goods or services without the use of money. | | 53 |
| 13801155769 | commodity money | something that performs the function of money and has intrinsic value | | 54 |
| 13801172681 | fiat money | used as money but has no other value | | 55 |
| 13801177024 | 3 functions of money | medium of exchange, unit of account, store of value | | 56 |
| 13801181474 | financial sector | Network of institutions that link borrowers and lenders including banks, mutual funds, pension funds, and other financial intermediaries | | 57 |
| 13801181475 | assets | anything tangible or intangible that is owned | | 58 |
| 13801189673 | liability | anything that is owed | | 59 |
| 13801194671 | loan | agreement between a lender and borrower, with an interest rate | | 60 |
| 13824791459 | real interest rate | nominal interest rate - inflation rate | | 61 |
| 13824794424 | liquidity | the ease with which an asset can be converted into the economy's medium of exchange | | 62 |
| 13824806805 | m1 money | Cash in Circulation, Money in demand deposits (debit card), Travelers Checks | | 63 |
| 13824808531 | m2 money | M1 plus savings accounts, money market accounts, and other near monies | | 64 |
| 13824810645 | bonds | loans to firms in the form of an IOU that pays interest | | 65 |
| 13824814336 | stocks | shares of ownership in a company | | 66 |
| 13824816706 | when interest rates increase, bond prices: | decrease | | 67 |
| 13824821252 | when interest rates decrease, bond prices: | increase | | 68 |
| 13824827864 | the money market | demand and supply of money | | 69 |
| 13824830227 | transaction demand for money | money held for the purpose of making everyday market purchases | | 70 |
| 13824834520 | asset demand for money | people hold money since it is less risky than other assets | | 71 |
| 13824840301 | money market graph | |  | 72 |
| 13824849809 | demand shifters in money market | changes in PL, changes in income | | 73 |
| 13824873016 | supply of money market | set by the fed | | 74 |
| 13824939344 | fed actions | reserve requirement, lowering and raising discount rates, buying and selling bonds (open market operations) | | 75 |
| 13824935300 | expansionary monetary policy | Federal Reserve system actions to increase the money supply, lower interest rates, and expand real GDP; an easy money policy. | | 76 |
| 13989600700 | contractionary monetary policy | Federal Reserve system actions to decrease the money supply, increase interest rates, and lower GDP | | 77 |
| 13989673387 | loanable funds market | the private sector supply and demand of loans | | 78 |
| 13989678465 | loanable funds demand shifters | 1. Changes in perceived business opportunities
2. Changes in gov't borrowing
3. Gov't deficit/surplus | | 79 |
| 13989682133 | loanable funds supply shifters | 1. Changes in private savings behavior
2. Changes in public savings
3. Changes in foreign investment
4. Changes in expected profitability | | 80 |
| 13989689385 | net exports | exports - imports | | 81 |
| 13989689386 | trade surplus | exports > imports | | 82 |
| 13989695502 | trade deficit | imports > exports | | 83 |
| 13989699875 | balance of payments | summary of a country's international trade | | 84 |
| 13989702559 | current account | goods and services, investment income, net transfers | | 85 |
| 13989705013 | financial account | financial assets that are recurring | | 86 |
| 13989709169 | foreign direct investment | when a foreign company buys a business in another country | | 87 |
| 13989714537 | net capital outflow | foreign assets - domestic assets | | 88 |
| 13989718985 | financial account surplus | inflow > outflow | | 89 |
| 13989724023 | financial account deficit | outflow > inflow | | 90 |
| 13989761268 | if the current account has a deficit: | the financial account must have a surplus | | 91 |
| 13989844354 | if interest rate increases | inflow increases, outflow decreases | | 92 |
| 13989847067 | if interest rate decreases | inflow decreases, outflow increases | | 93 |
| 13989858145 | depreciation | loss of value of a country's currency with respect to a foreign currency, net exports increase | | 94 |
| 13989862830 | appreciation | increase of value of a country's currency with respect to a foreign currency, net exports decrease | | 95 |
| 13989870027 | foreign exchange shifters | changes in tastes, relative income, relative price level, and relative interest rates | | 96 |
| 13989898015 | changes in relative income | Increase: more imports, demand for other country's money increases
Decrease: less imports, demand for other country's money decreases | | 97 |
| 13989925988 | floating exchange rate | the market determines the value of the country's currency | | 98 |
| 13989931143 | fixed exchange rate | The government activity manages the country's currency | | 99 |