General Macro
GDP formula
What is C + I + G + (X - M)?
2 determinants of Aggregate Demand
C, I, G, (X-M)
Taxes are a part of which policy? Who is responsible?
Fiscal
Government
decides Fiscal Policy
What is the Government?
decides monetary policy
Who is the Federal Reserve?
3 types of unemployment
What are 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.
What is the FOMC (set monetary policy), District Banks & Board of Directors (supervise banking system)?
2 tools of fiscal policy
What are government spending & taxes?
4 tools of Monetary Policy
What are Required Reserve, Interest Rates and Bonds/Government Securities?
These groups are hurt by unanticipated inflation
Lenders, savers, 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
When expansion, use tight money; when contraction, use easy money?
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 cost to produce & productivity?
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 Business Investment(I)
What is Business Investment(I) will decrease?