General Macro
Write the Output Expenditure Model
What is C + I + G + (X - M)?
2 determinants of Aggregate Demand
What are the determinants of GDP?
Tax Multiplier
Spending Multiplier minus 1
Impact of decrease/increase in taxes on GDP
decides Fiscal Policy
What is the Government?
implement monetary policy and control money supply
What is the Federal Reserve?
4 types of unemployment
What are seasonal, frictional, structural, cyclical?
2 requirements to be unemployed
Who are without a job and looking for a job?
Describe the parts of the Fed and their job.
Set monetary policy
2 tools of fiscal policy
What are government spending & taxes?
4 tools of Monetary Policy
What are Required Reserve, Interest Rates, Discount Rates, and Bonds/Government Securities(open market operations)?
These groups are hurt by unanticipated inflation
What are savers, lenders, investors, fixed income, and salaried workers?
3 Goals of Macroecomomics
What are full employment, economic growth, and price stability?
3 functions of money
What are medium of exchange, store of value, standard of value?
Fiscal policy is used
When in an expansion, contractionary policy is used, and in a contraction, expansionary policy is used?
Monetary Policy is used
during an expansion or contraction
Value of money, amount in circulation, & prices during inflation
What is value decreases, amount increases, and prices increase?
2 determinants of Aggregate Supply
What are production costs & government regulations?
relationship between national debt and deficit
What is a deficit will cause the national debt to increase?
Economy experiencing rapid inflation above 33% the government responds
What is contractionary fiscal policy with increased taxes and decreased government spending?
Fed has purchased a lot of bonds from banks recently, this indicates...
What is a recession?
Describe the situation in an expansion and a contraction.
What is Expansion -- GDP, AD, AS up, UNE down, inflation, and Contraction -- GDP, AD, AS down, UNE up, deflation?
Phases of the Business Cycle
What are an expansion and a recession?
Taxes go up, this will impact saving and spending
What is saving will go up and spending will go down?
Government spending increases, effects on unemployment and price levels
What are unemployment decreases and price levels increase?
Increase in Discount Rate, effect on consumer spending
What is consumer spending will decrease?