AP MACRO

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nnj4080
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248336
Filename:
AP MACRO
Updated:
2013-11-21 18:45:57
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macro econ
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vocab quiz words
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  1. balance of payment
    a summary of a country's transactions with other countries, including two main elements: the balance of the payments on the current account and the balance of the payments on the financial account
  2. depreciation
    decrease in value due to wear and tear, decay, decline in price, etc
  3. balance of payments on the current account
    a country's balance of payments on goods and services plus net international transfer payments and factor income
  4. sustainable
    describes continued long-run economic growth in the face of the limited supply of natural resources and the impact of growth on the environment
  5. rule of 70
    a mathematical formula that states the time it takes real GDP per capita, or any other variable that grows gradually over time, to double is approximately 70 divided by that variable's annual growth rate
  6. devaluation
    a reduction in the value of a currency that is set under a fixed exchange rate regime
  7. labor productivity
    output per worker
  8. revaluation
    an increase in the value of a currency that is set under a fixed exchange rate regime
  9. infrastructure
    items such as roads, power lines, ports, information networks, and other parts of an economy that provides the foundation for economic activity
  10. physical capital
    human made goods such ad buildings and machines used to produce other goods and services
  11. foreign exchange reserves
    stocks of foreign currency that governments can use to buy their own currency on the foreign exchange market
  12. human capital
    the improvement in labor created by the education and knowledge embodied in the workforce
  13. technology
    the technical means for the production of goods and services
  14. research and development
    spending to create and implement new technologies
  15. balance of payments on goods and services
    the difference between the value of exports and the value of imports during a given period
  16. merchandise trade balance
    the difference between a country's exports and imports alone - not including services
  17. convergence hypothesis
    a theory of economic growth that holds that international differences in real GDP per capita tend to narrow over time because countries with low GDP per capita generally have a higher growth rate
  18. aggregate production function
    a hypothetical function that shows how productivity depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology
  19. exchange market intervention
    government purchases or sales of currency in the foreign exchange market
  20. floating exchange rate
    an exchange rate regime in which the government lets the exchange rate go wherever the market takes it
  21. total factor productivity
    the amount of output that can be produced with a given amount of factor inputs
  22. fixed exchange rate
    an exchange rate in which the government keeps the exchange rate against some other currency at or near a particular target
  23. exchange rate regime
    a rule governing policy toward the exchange rate
  24. growth accounting
    estimates the contribution of each of the major factors in the aggregate production function
  25. balance of payments on the financial account
    the difference between a country's sales of assets to foreigners and its purchases of assets from foreigners during a given period
  26. exchange rates
    the price at which currencies trade, determined by the foreign exchange market
  27. appreciates
    to increase in value
  28. equilibrium exchange rate
    the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied
  29. diminishing returns ti physical capital
    in an aggregate demand production function when the amount of human capital per worker and the state of technology are held fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity
  30. depreciates
    to reduce the purchasing value of money
  31. real exchange rate
    the exchange rate adjusted for international differences in aggregate price levels
  32. purchasing power parity
    the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country

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