Growth
What are the three types of unemployment?
What is frictional, structural, and cyclical?
What is the cost of capital per year?
What is Real interest rate x price of capital?
What is the reserve-deposit ratio equation?
Bank reserves/deposits
How would you find saving rate?
Divide savings by income and multiply by 100
If a country grows 4 percent per year, using the rule of 72 how many years will it take that country to quadruple?
36
What is human capital? And give an example of something that could increase human capital?
human capital the training and skills of a worker and education could increase human capital
What are the three functions of money?
Medium of exchange, unit of account, store of value
What is the equation to find net taxes?
Net Taxes = Taxes – Transfers - Interest
When the Fed buys or sells government bonds which two variables change?
Bank reserves and the money supply
What is diminishing returns to capital and to labor?
holding all other inputs fixed, the decreasing output which every new worker or machine adds
What are two reasons labor demand might shift right?
Price of output rises & workers become more productive
A rise in the price of stocks you own raises your ________, but it is not ________
Wealth & saving