Exam 2 Flashcards

1
Q

GDP

Is what?

A

The current market value of the total final goods and services produced within the nation that is producing

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2
Q

GNP everyone uses and it is

A

The value of goods and services produced by nation resources aboard less

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3
Q

Chap. 14

Currency in which the commodity itself serves as money

A

Commodity Money

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4
Q

What are the types of money?

And describe

A

Commodity
Metallic
Fiat
Representative

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5
Q

Anything generally accepted in exchange for other goods and services

A

Money

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6
Q

4 essential goals of money

A

Standard of value- means that we can value of all other g/s in terms of money

Medium Exchange - eliminate tuned for a “double coincidence of wants”

Store of Value - Enables us to convert the excess of goods into money and train the money

Money Stock - Qty. of money in existence at any given time

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7
Q

Measuring of the Money Supply

A

M1 & M2
M1: Liquid definition of money; checking deposits
M2: Total of M1 + Savings deposits a.k.a. All assets (is growing)

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8
Q

Chap. 11
Circular flow demonstrate
If injection were greater than leakages the economy would expand
If leakages were greater than injection th economy would contract

A

Republicans are for injections

Democrats are for leakages

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