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Macro Economics > Exsam 3 > Flashcards

Exsam 3 Flashcards

(69 cards)

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0
Q

Unemployment rate calculation

A

Unemployment =# UE in labor force/total labor force

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1
Q

Unemployment

A

In labor force and seeking a job with in the last 4 weeks

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2
Q

Labor force calculation

A

Labor force/ total pop. 16 or older= labor force participation rate

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3
Q

Employment with jobs vs. total working population

A

Employed / total work force

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4
Q

Employment vs. total society

A

Employed /total population of country= E vs. TS

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5
Q

Four problems in measuring unemployment

A
  1. Doesn’t truly measure discouraged workers
  2. Part time workers seeking full time work
  3. Underground Economy isn’t measured
  4. Surveys( people lie in order to keep unemployment benefits and say they are seeking a job )
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6
Q

BLS- Burro of labor statistics

Why did unemployment rate go down?

A

Reports unemployment, rates, discouraged workers

  1. Some unemployed workers got hired
  2. Some unemployed workers stopped seeking work
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7
Q

Frictional unemployment

A

Laid off and in proses if seeking a job and will get a job shortly

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8
Q

Structural unemployment

A

No jobs, person has no skills to do jobs

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9
Q

Cyclical unemployment

A

Sessional unemployment, during a Particular season you have a job

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10
Q

Natural unemployment rate

A

5-6% indicates full employment

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11
Q

Minimum wage

A
  1. Could put people out of work
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12
Q

Efficiency wage

A

Employer pays more because they want to keep you

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13
Q

Consumer price index (CPI)

A

Index that measures how price goes up or down a product bought

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14
Q

Producer price index PPI

A

Index measures how price goes up on company bought products

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15
Q

Union

A

Organization that represents the workers (as a group) interest

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16
Q

Collective bargaining

A

When employers negotiate with workers as a whole

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17
Q

Economic growth

A

Is the countries GDP increasing ( economic expansion)

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18
Q

Long term economic growth

A

The proses by which rising productivity increases the average standard of living

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19
Q

Mortality

A

Measure death rate
Male 78
Female 83

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20
Q

Morbidity

A

Measure show healthy a country women less healthy than men

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21
Q

Leisure hours

Paid hours

Discretional hours

A
  • Time spent doing nothing
  • time spent working a job
  • time doing something other than getting paid doing what you like
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22
Q

How to measure how quickly GDP will dubles

A

70/annual GDP growth rate=time GDP will duble

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23
Q

Things to determine long term growth

A
  • technology
  • capital (equipment and machinery)
  • productivity
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24
Potential GDP
All of firms products at capacity
25
Financial systems
Consists of financial intermediaries
26
Financial intermediaries
Places that are gonn to in order to handle money. - bank - credit union - ect.
27
Consumption
Consumption= 1/ savings -consumption and savings have a inverse relationship
28
4 issues to be conserved with when making an investment
1. Do i get my money back 2. What is my return on my money 3. How fast will i get my return 4. What kind of tact benefits will i get
29
Crowding out
government spending goes up investments go down, because it takes away investment opportunities for private companies
30
Recession
GDP is negative for 2 consecutive quarters | -inflation goes low so unemployment goes high
31
Depression
Long term recession
32
Expansion in relation to unemployment
Unemployment goes high when inflation is low
33
Deflation
Value of money goes up makes us richer | - unemployment goes up during long term bc inflation goes up
34
Stagflation
As stagflation occurs unemployment goes up
35
Disinflation
Value of dollar goes up and down | - depending on weather or not going up or down will have a different effect on unemployment
36
Long run economics
Looks at economic land scape over a long term in the bigger picture
37
Industrial revolution
- Pushes American food production to an all time high | - growth is needed to keep up with the Rest of the world
38
GDP per capita
Measures whole economy (GDP)/ total population of a country
39
GDP growth rate
GDP growth rate = 70 / average GDP growth rate (3.2 for USA)
40
Factors that contribute to a grow a economy
Equipment and machinery Human capital Technology
41
Per worker production function
Measures how productive a person , high (PWPF) is better
42
Why don't counties grown
``` Low rates of savings and investments Rule of law not enforced Poor education system Poor health Civil wars ```
43
Globalization
Talks about the world as a whole - competition with the whole world - economies generally grow during globalization
44
Growth promotes
``` Technology improvements Economic growth Health improvement Education improvement Savings and investments improve Relationships with other countries GDP per capita ```
45
Aggregate expenditure
Same as GDP AE = I+ GS+ C + net exports
46
Trade deficit
Our imports are greater than out exports (USA )
47
Types of products
Raw materials In proses materials Finished products
48
Inventories
Impact how GDP or AE look
49
Things that impact consumption
- Current disposable income - interest rates (low interest good) - expected future income - price levels (low helps economy, hight hurts )
50
Wealth
Already accumulated assets
51
Income
Ability to accumulate assets
52
Disposable income
Money left over after taxes - DI goes up consumption goes up - DI goes up savings goes up gradually
53
Marginal Popentacy to consume
MPC =
54
Savings function
As savings gradually go up disposable income goes up MPC +MPS= 1
55
Cash flow
The amount of money that passes through your hands
56
Aggregate demand
Looks at demand for whole economy
57
Aggregate supply
Looks at supply for whole economy
58
Short term aggregate supply
Aggregate supply within a single year
59
Things that effect short term arrogate supply
Wealth effect Interest rate effect International trade deficit
60
Wealth effect
As price goes up, we get poorer | As price goes down we get richer
61
Interest rate effect
Interest rates go up we get poorer, as they go down we get richer
62
International trade effect
As we sell more we get richer, sell less we get poorer
63
Monetary policy
How the government manages money, makes adjustments to interest rates and supply of money
64
Fiscal policy
Government Taxes and government spending policy's
65
Shifts aggravate demand curve to the right
- Government purchases - Household exasperation a of future income - firms expectations of future probability and spending
66
Shifts aggregate demand curve to the left
- Interest rages go up - Personal income taxes or business taxes - the growth rate of domestic GDP in relation to foreign GDP - exchange rage ( value of the dollar) relative to other currency's
67
Price in relation to AE
Price goes up , AE goes down
68
Interest rates in relation to AE
Interest rates go up, AE goes down

Macro Economics (5 decks)

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