Equations & Models
(% change in quantity demanded) / (% change in price)
What is the price elasticity of demand?
This is the percentage of the total labor force that is jobless but actively looking for work.
What is the unemployment rate?
This UW hub provides resources to help you find internships, improve your resume, networking and interview skills. It also highlights career options for econ majors.
What is the Economic Career Development Office?
If inflation is high and the fed wants to bring it down, they do this.
What does raising interest rates do?
This person is known for his work on game theory, specifically for developing the concept of a _____, a situation in game theory where each player's chosen strategy is their best possible response to the strategies of the other players.
Who is John Nash?
This is the additional output that is produced when one unit of capital is added, holding all other inputs constant. ___ = 1/3 (Y/K)
What is the marginal product of capital?
This is the value of one country's currency in relation to another's, or how much of one currency is needed to buy one unit of another.
What are exchange rates?
This is a qualitative summary of current economic conditions across the 12 Federal Reserve Districts, published eight times a year.
What is the Beige Book?
Suppose the nominal interest rate on a loan is 13% and inflation is 3%. This is the approximate real interest rate.
What is 10%?
This Nobel Prize winning economist once said, "In the long run, we are all dead"
Who is John Maynard Keynes?
u(a,b) = aalpha * bbeta
also seen as
F(K,L) = Kalpha * L(1-alpha)
What is the Cobb-Douglass Production Function?
Individuals who want a job but stopped searching because they believe none are available.
What are discouraged workers?
This is the principal federal agency for measuring labor market activity, working conditions, price changes, and productivity in the U.S. economy.
What is the Bureau of Labor Statistics?
If there is a slowdown in the labor market, such as rising unemployment or slowing job growth, the fed will do this.
What is cut interest rates?
They are the first person of color to win the Nobel Laureate in Economics.
Who is Sir Arthur Lewis?
Y = A(constant) * Kalpha * L(1-alpha)
What is the Solow growth model production function?
This is a line that plots the interest rates of bonds that have equal credit quality but different maturity dates. The slope predicts the direction of interest rates and the economic expansion or contraction that could result.
What is the Treasury Yield Curve?
This is internally prepared by the board of governors and is a Federal Reserve document containing staff analysis and economic forecasts.
What is the Teel book?
The FED cut this many basis points last FOMC meeting.
What is 25 basis points?
This economics instructor at UW-Madison with a minimum of 50 reviews has the highest rate my professor score.
Who is Christopher Mckelvey (4.7)?
Yt = Atgamma * Lyt
What is the Romer model output production function?
Policy makers use this to determine if current interest rates are too high or too low. In the long run, it represents the neutral rate or steady state of economy where we have maximum employment given 2 percent inflation.
What is R* ?
Name at least one econ academic advisor at UW -Madison.
Who are Carly Stiewert, Sam Dzuik, Alicia Johanning?
When central banks implement forward guidance, they aim to influence this type of rate, which shapes long-term borrowing costs without immediate changes in the policy rate.
What is the expected future short-term rate?
She is the first person to hold the top three economic positions in the U.S.: Chair of the Council of Economic Advisers, Chair of the Federal Reserve, and Secretary of the Treasury.
Who is Janet Yellen?