Cards in this guide (22)
Suppose an economy real GDP is 30000 in year 1 and 31200 in year 2 what is the growth rate of its real GDP
Was inflation a big problem during the revolutionary war
Inflation was a big problem for Americans during the
Revolution
The main economic variables that affect business cycles
Recessions and periods of economic growth as the efficient
response to exogenous changes in the real economic environment.
Which phase of a business cycle that leads and economy into recession
a contrction because a recession is a prolonged contarction and
to determine when in recession real GDP starts to fall. Contraction
is a period of economic decline marked by falling real GDP
What is one service the fed performs for the treasury department
It processes payments, such as Social Security checks.
What is income not used for consumption called
How can a trade deficit actually increase the productivity of an economy
by importing investment goods used for capital deepening
What is the function of a bank examiner
to make sure the banks are obeying laws and regulations
A patent is an exclusive right to produce and sell a product for how long
How does an economist compare the standard of living in two different countries
by comparing real GDP per capita
What terms relates to money and banking
monetary policy
monetary policy
A+
What are the four main limitations of GDP accuracy
nonmarket activities, underground economy, negative
externalities, and quality of life
What is the proportion of saved disposable income called
How do you change federal funds rate
The federal funds rate is the interest rate banks charge on
loans in the federal funds market. The federal funds rate is not
set administratively by the Fed. Instead, the rate is determined by
the supply of reserves relative to the demand for them.
How does a higher level of saving lead to higher gdp in the future
Because more capital is available for investment, leading to
higher output through capital deepening
What does a fractional reserve banking system mean
ensures growth in the economy
What is the process of increasing the amount of capital used per worker
capital deepening novanet
Is the increase in efficiency gained by producing more output without using more inputs.
Globalization the development of new technology changes in consumer demand and the discovery of new resources are all causes of
If economists calculate the GDP for 2009 using current prices of year 2009 what are they estimating
Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply
aggregate demand will decrease, lowering both real GDP and the price level
Which one of the following statements regarding rack systems is FALSE
Please include the statements.
