Macro intro (L1&2)

Question 1

Parameters/exogenous variables

Answer 1

determined outside of the model
parameters are fixed, exogenous variables can change over time

Question 2

fiscal policy

Answer 2

AD controlled by tax, gov spending/debt

Question 3

Monetary policy

Answer 3

central bank controls money supply with ir and quant easing

Question 4

GDP

Answer 4

Aggregates the production of cars healthcare etc into a single measure of economic activity
=total income=total spending
GROSS DOMESTIC PRODUCT final value of goods produced in certain period

Question 5

expenditure approach

Answer 5

y=c+i+g+x

Question 6

adult population

Answer 6

labour force + not labour force

Question 7

unemployment rate

Answer 7

unemployed/labour x100

Question 8

labour force participation rate

Answer 8

labour force/adult population x100