Supply & Demand
Tastes, Related Goods, Income, Population, Expectations
What is TRIPE: Determinants for Demand?
Cap on a price the government sets
What is a price ceiling?
regulate and oversee commercial banks, conduct monetary policy
What are the jobs of Central Banks?
Non-excludable, rival goods
What are common goods?
What is frictional unemployment?
Positive relationship between price and quantity supplied
What is the Law of Supply?
Quantity demanded = Quantity Supplied
What is equilibrium?
Reserve Requirements, Discount Rates, Buying Bonds
What are tools used to conduct monetary policy?
Netflix and private parks are examples of...
What are club goods?
As your income increases, the percentage you owe in taxes also increases
What are progressive taxes?
Sellers, Productivity, Input prices, Taxes/Subsidies, Expectations
What is SPITE: Supply Determinants?
minimum price that buyers are expected to pay for a product
What is a price floor?
Stabilizing the business cycle and growing the economy
What is the goal of fiscal policy?
Excludable, rivalrous goods
What are private goods?
When there's a mismatch between the skills workers have and the skills employers need
What is structural unemployment?
Inverse relationship between price and quantity demanded
What is the Law of Demand?
% change in Quantity Demanded/% change in Price
What is the formula to calculate elasticity?
Adjusting taxes, adjusting federal spending and budget
What are the tools used to conduct fiscal policy?
Type of good that leads to the free rider problem
What are public goods?
The percentage your income is taxed at remains the same at every income level
What are proportional taxes?
On a demand and supply curve, changes in price affect:
What is the quantity?
The sensitivity consumers have in terms of quantity demanded when price increases or decreases
What is the elasticity of demand?
Increasing the money supply, lowering interest rates
someone who enjoys the benefits of a good without contributing to its cost
What is the free rider problem?
Groups that count towards the labor force
What are the underemployed, employed, and unemployed groups?