Methodology & Modeling
Measured at a specific point in time?
Economic Stocks
Who prioritized aggregate demand?
John Maynard Keynes
Household income not spent?
Savings (Leakage)
GDP adjusting for inflation?
Real GDP
Joblessness during career shifts?
Frictional Unemployment
Measured over a period of time?
Economic Flows
Flexible wages ensure what?
Self-regulating markets
Spending on capital goods?
Investment (Injection)
GDP using current prices?
Nominal GDP
Skills mismatch due technology?
Structural Unemployment
Generalizing from individual data?
Principle of Aggregation
Focused on money supply?
Monetarist School
Taxes and imports are?
Economic Leakages
Broader index than CPI?
GDP Deflator
Job loss during recessions?
Cyclical Unemployment
Model using optimizing agents?
DSGE Models
Introduced rational expectations?
Robert Lucas
Revenue from abroad represents?
Economic Injections
Income of domestic factors?
National Income
Tracks average consumer baskets?
Consumer Price Index
Variables determined within models?
Endogenous Variables
What prevents rapid adjustment?
Sticky prices
Equilibrium condition for flows?
Injections equal Leakages
GDP plus net foreign income?
Gross National Product
Actively seeking work population?
The Labor Force