Final Flashcards
1
Q
balance of payments (BoP)
A
CUR + CAP - ^OIR
2
Q
CUR =
A
BoT + BoS + NFII
3
Q
CAP =
A
STCF + LTCF
4
Q
if XR increases
A
currency appreciates
5
Q
if XR decreases
A
currency depreciates
6
Q
terms of trade (ToT)
A
(export price index / import price index) x 100
7
Q
effect of tariffs on consumers
A
lose
8
Q
effect of tariffs on domestic producers
A
gain
9
Q
effect of tariffs on foreign producers
A
lose
10
Q
effect of tariffs on government
A
gain
11
Q
overall effect of tariffs
A
lose
12
Q
if AD increases with KAS
A
full impact is on Y, P is unaffected
13
Q
if AD increases with LRAS
A
full impact is on P, Y is unaffected
14
Q
if AD increases with SRAS
A
depends on where you are on the curve
15
Q
SRAS increases
A
P decreases, Y increases
