ECON ACTIVITY
Total market value of all final goods and services
What is GDP?
The purchase of new buildings, new plant, new vehicles, new machinery
What is an investment?
This curve has 3 segments
What is the Keynesian aggregate supply curve?
Total income households from wages, salaries, and transfer from government less taxation
What is disposable income?
What is fiscal policy?
The branch of econ which involves aggregates
What is macroeconomics?
Changes in household indebtedness, personal income taxes, changes in interest rates, changes in technology, changes in political priorities
What cause shifts in aggregate demand?
Believed that it is possible for economies to remain in a position of short-run equilibrium for long periods of time
What is Keynes economy?
When the average level of prices is moving neither up nor down
What is price stability?
Government policy that attempts to alter the level of AD to complement government policy
What is demand side policies?
The wearing out of capital goods
What is depreciation?
There is no cyclical unemployment, only structural, frictional, and seasonal
What is the natural rate of unemployment?
Those of working age who are without work but who are available for work
What is underemployment?
A sustained reduction in the general level of prices
What is deflation?
Social security pensions, Unemployment benefits, and Welfare
What are automatic fiscal stabilizers?
The increase in a country's output over time
What is economic growth?
C+I+G+(X-M)
What is aggregate demand?
Measures the change in purchasing a fixed basket of goods and services from one time to another
What is the consumer price index?
Payments received by persons from the government in the form of social security, income support, subsidies
What are transfer payments?
The quantity of money in the economy determined by federal reserve based on interest rates
What is monetary policy?
The periodic fluctuation of national output around its long-term trend.
What is the business cycle?
The average of all prices, measured using an index also the label on the Y-axis in macro.
What is price level?
Inflation induced by a persistence of an excess of aggregate demand in the economy over aggregate supply
What is demand pull inflation?
Measures the extent of equality in distribution of income and wealth. 0 being perfect equality and 1 being perfect inequality
What is the Gini coefficient?
The strategy where governments impose trade barriers to protect domestic industries from import competition
What is protectionism?