Definitions
What is the Definition of Macroeconomics?
How is GDP per capita calculated?
Gross Domestic Product / Population
What's a situation in which the market does not distribute resources efficiently?
Market Failure
When was the great depression?
1929 to 1933
Name one reason for the rising level of
production historically.
growth in population
What is the Definition of Positive Economics?
The use of the tools of economic analysis to describe and explain economic phenomena and to make predictions about what will happen under particular circumstances
What is GDP's equation?
Total Market value goods and services in a specific time period.
What does GDP stand for and what is its Definition? (ANSWER BOTH QUESTIONS OR NO CREDIT)
1) Gross Domestic Product
2) Market value of all final goods and services produced domestically during a specific period of time.
How many months did the Great Depression last?
43 months
By what factor has population
increased since 1900?
4
What is the definition of Normative Economics?
Economic analysis is used to guide decisions about what should be as opposed to what is the case
How does the US Bureau of Labor Statistics measure inflation?
Calculate the consumer price index.
What is an excise tax?
Manufacturing tax
What year did the US department of commerce commission the system to measure national output?
1932
Name the three aggregate economic indicators.
Gross Domestic Product (GDP), the cost of living, and the unemployment rate.
What is the definition of Pareto Efficiency?
Describes an allocation in which the only way to make any individual or group of individuals better off would require making at least one other person worse off
What was the average output per person in the US in 2019?
$65,000
What are the three characters of inflation?
Reduces the value of money, introduces distortions into pricing, and inflation introduces confusion about the true value of goods and services in the future. (Page 95).
What year did Simon Kuznets finish the system to measure national output (GDP)?
1934
What four things do higher levels of production make possible?
Longer life, broader access to education, better healthcare, and cleaner environments
Explain the difference between a trade surplus and a trade deficit.
Exports exceed Imports in trade surplus and Imports exceed Exports.
What is the GDP deflator equation?
Nominal GDP = (GDP Deflator/100) x (Real GDP)
or
GDP Deflator = 100 x (Nominal GDP)/(Real GDP)
What’s the name of the blue dinosaur?(SPELLING COUNTS)
Cyan
What are the two most notable fluctuations in
U.S. output since 1900?
The Great Depression 1929-33 and the expansion
of output due to WWII 1941-5
What is the central focus of macroeconomics in
regard to recessions?
finding ways to reduce the severity and
duration of such periods.