Measuring Growth
This is the effect of money losing its value over time.
What is Inflation?
In this system, people come to the market and trade things without money.
What is the Barter System?
The central bank of the US, this bank acts as a "bank to other banks."
What is the Federal Reserve (Fed)?
Inflation does this to the value of a dollar over time.
What is decrease/make it weaker?
These are the reasons why people make a decision.
What are Incentives?
Taking Nominal GDP and factoring inflation gives you this.
What is Real GDP?
This is the type of money that has value just because the government says it does.
What is Fiat Money?
The amount of money available to spend in an economy is known as this.
What is the Money Supply?
This is the measure of the average price of all common goods and services in an economy.
What is the Consumer Price Index (CPI)?
This is the next-best decision a person could make.
What is Opportunity Cost?
This is the formula for calculating Real GDP Per Capita.
What is Real GDP / Population?
This is the system of representative money that the USA used until it abandoned it in 1971.
What was the Gold Standard?
This is the money supply that included all liquid money plus money that is less liquid, such as Certificates of Deposit.
What is M2?
This is the adjective describing the total supply of all things in the economy and total demand for all things in the economy.
What is Aggregate?
This is the point where quantity supplied equals quantity demanded.
What is Equilibrium?
This is the formula for calculating Nominal GDP.
What is GDP = C + I + G + (X - M)
Consumption + Investments + Government Expenditure + Net Exports
When two people want what the other person has, it is said to be this situation.
What is the Double Coincidence of Wants?
These are the 3 main roles of the Federal Reserve.
What are Bank Supervision, Payment Processing, and Managing the Money Supply?
This is the formula for calculating inflation.
What is...
(Today's price - old price) * 100% / (old price)
If the quantity demanded of a good does not change much when price changes, it is said to be this.
What is an Inelastic Good?
This is the Real GDP Per Capita, measured against last year, in a country that has 100 citizens, a Nominal GDP of $240,000, and an inflation rate of 20% compared to last year.
What is $2000?
These are 5 of the 6 characteristics of good money.
What are Durable, Portable, Divisible, Fungible, Acceptable, and Scarce?
This is the effect that, when banks give loans, more money is "created" in the economy.
When interest rates are high, people are incentivized to do this.
What is save and/or borrow less?
When a producer is deciding how much of a good or service to provide, they will perform one of these.
What is a Marginal Cost-Benefit Analysis?