GDP, Unemployment
GDP is comprised of investment spending, government spending, net exports, and this.
What is consumer spending?
The denominator for calculating the money multiplier is equal to this.
What is the reserve requirement?
This group within the Federal Reserve meets every 6 weeks and is in charge of open market operations.
What is the Federal Open Market Committee (FOMC)?
Fiscal policy can only be conducted by these entities.
Who is the Congress or President?
The government spending multiplier is equal to this formula.
What is 1/MPS or 1/(1-MPC)?
If Pedro the expert video cassette maker is unemployed recently due to the invention of DVD's, his unemployment is of this type.
What is structural?
When contractionary fiscal policy is pursued and the government wishes to increase taxes but decrease spending, it acquires this type of budget.
What is a surplus?
An increase in this causes the crowding out of investment spending in the loanable funds market.
What is the real interest rate?
GDP does not include second hand sales to avoid doing this.
What is double counting?
If Carlos deposits $100 into his checking account, then this is this the immediate change with the overall money supply.
What is no change to the money supply?
If the government wants to change taxes appropriately to exactly close an output gap, then it must take into account this to properly calculate the spending and tax multipliers.
What is the MPS?
When the US government increases spending, this happens to the loanable funds market.
What is the demand for loanable funds shifts right?
When an individual cashes a check in a bank, these increase.
What are demand deposits and reserves?
Expansionary fiscal policy entails decreasing taxes and increasing this.
What is government spending?
Crowding out results in what happening to the value of that countries currency on the FOREX market?
What is appreciation?
Part-time workers who are still students are counted as this.
What is not part of the labor force?
When a bank makes a new loan, it is actively doing this.
What is expanding the money supply?
According to the Money Market Graph; as the money supply increases, this decreases.
What is the nominal interest rate?
The goal of contractionary fiscal policy is to close this type of output gap.
What is an inflationary gap?