Chapter 1 Flashcards
(6 cards)
1
Q
Macroeconomics
A
the study of collections of people and firms and how their interactions through markets determine the overall economic activity in a country/region
2
Q
Parameter
A
an input that is generally fixed over time, except when the model builder decides to experiment by changing it
3
Q
Exogenous variable
A
an input that is allowed to change over time, but in a way that is completely determined ahead of time by the model builder
4
Q
Endogenous variable
A
outcomes generated by exogenous variables and parameters
5
Q
Potential output (short-run)
A
measures the way per capita GDP would evolve if prices were completely flexible and resources were fully employed
6
Q
A
