Macroeconomics

Card Set Information

Author:
awture
ID:
252846
Filename:
Macroeconomics
Updated:
2013-12-12 15:57:00
Tags:
Macroeconomics
Folders:

Description:
Principles of Economics
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user awture on FreezingBlue Flashcards. What would you like to do?


  1. Economics
    the study of how societies use limited resources to satisfy unlimited needs and wants
  2. Scarcity
    needs and wants are unlimited, but resources are limited
  3. Macroeconomics
    taking notice of the economy as a whole
  4. Economic Systems
    Traditional (customary) poor countries-passed down through customs, command (planned) – government controlled, market (capitalistic) – no one is in control, consumers, mixed (US) – most countries
  5. Positive Economics
    Way economy operates
  6. Normative Economics
    What economy should be
  7. Market
    place where goods and services are bought and sold
  8. Demand
    list of amounts that consumers are able and willing to purchase at each price
  9. Law of Demand
    inverse relationship between price of a product and the quantity demanded
  10. Change in Quantity Demanded
    moving from one point on a demand schedule or curve to another point
  11. Supply
    a list that shows the amount that the sellers are willing and able to make available for sale at each price
  12. Law of Supply
    direct relationship between price and quantity supplied
  13. GDP
    measures total amount of what is produced in a given year
  14. Recession
    decline in output for two or more quarters
  15. Depression
    severe reduction in total output accompanied by high unemployment lasting more than a year
  16. Aggregate Output
    the total amount of goods and services produced in a given period of time
  17. Aggregate demand
    total amount of all final goods and services bought each price level
  18. Aggregate Supply
    total amount produced at each price level
  19. Aggregate Expenditures
    total spending of final goods and services
  20. Unplanned Changes in Inventory
    the amount that businesses’ inventories are above/below their desired level
  21. POTENTIAL OUTPUT
    maximum level of output the economy can produce
  22. EXPANSIONARY FISCAL POLICY
    increase in government spending to close a contractionary gap
  23. CONTRACTIONARY GAP
    actual level of output is below potential level
  24. CONTRACTIONARY FISCAL POLICY
    decrease in government spending to close an expansionary gap
  25. DISCRETIONARY FISCAL POLICY
    deliberate changes in government spending to effect level of economic activity
  26. DEFICIT
    government expenditures are larger than its revenue
  27. SURPLUS
    government revenue is larger than its expenditures
  28. Money
    must be a medium of exchange, unit of account, standard of deferred payment, function store value
  29. Reserves
    assets that fed allows banks to use to back up deposits
  30. Required Reserves
    the dollar amount the fed says banks must have in reserves
  31. Excess Reserves
    any reserves the banks has over required reserves
  32. Expansionary Monetary Policy
    when the fed increases the money supply, which lowers the interest rate, which increases investment, aggregate demand, and output.
  33. Contractionary Monetary Policy
    When the fed decreases the money supply, which increases interest rates, which in turn decreases investment, aggregate demand and output.

What would you like to do?

Home > Flashcards > Print Preview