Introductory Concepts
What is scarcity?
Open market operations allow a central bank to indirectly influence interest rates in this type of reserve framework.
What is a limited reserves framework?
D = MR = AR = P in this market structure
What is perfect competition?
This type of GDP is adjusted for inflation and expressed in constant, or unchanging dollars.
What is real GDP?
This measures all international transactions within one year.
What is the Balance of Payments?
In this type of economy, the government decdies what will be produced, how it will be produced, and how it will be allocated.
What is a command economy?
Stabilizing prices and promoting full employment are known as this for the US Federal Reserve?
What is the dual mandate?
A firm will shut down in the short-run if the price falls below this
What is the Average Variable Cost (AVC)?
These two indicators are both used in the US to measure inflation.
What is the Consumer Price Index and the GDP Deflator?
Net exports, unilateral transfers, and investment income are all included in this account.
What is the current account?
What is opportunity cost?
This equation tells us by how much the money supply will increase when a bank receives a new demand deposit in a limited reserve framework. Please give the exact equation.
What is the money multiplier (1/reserve ratio)?
Marginal Revenue = Marginal Cost is known as which rule?
What is the profit maximizing rule?
This indicators measures the standard of living for a person within a given country
What is GDP per capita?
Exports will decrease when a nation's currency does this, relative to another currency.
What is appreciate?
This shows the different combinations of two goods that can be produced using all of country's resources to the fullest.
What is the production possibilities curve?
Raising or lowering administered rates is a crucial monetary policy tool in this framework.
What is ample reserves?
Differentiated products, low barriers to entry, and zero long run economic profit are key characteristics of this market structure
What is monopolistic competition?
These types of unemployment are always present when an economy is at its natural rate of unemployment (NRU).
What is frictional and structural unemployment?
In examining the USD and the CAD, an increase in the demand for USD will also lead to an increase in this for the CAD.
What is an increase in supply for CAD?
This graph can be used to identify the equilibrium price and the equilbirum quantity and analyze changes in the market
What is a supply and demand graph?
A central bank buys bonds and lowers the discount rate in a limited reserves framework in order to engage in this type of monetary policy?
What is expansionary monetary policy?
Demand = Marginal Revenue for this type of monopoly
What is a price-discriminating monopoly?
This equation measures the expenditure approach to GDP.
What is C + I + G + X - M ?
What is the capital and financial account?