Output/Productivity
Gross Domestic Product
How output/productivity is measured?
The type of economic policy controlled by the government.
What is fiscal policy?
Any person, who is 16 year old or older is currently not working, is available to work and has made specific efforts to find work during the previous 4 weeks.
What is unemployed?
The consumer price index.
What is a measurement for price stability?
The stages of the business cycle.
What is the trough, expansion, peak and recession?
The term to describe a country's output per person.
What is GDP per capita?
Households, Firms and Government
Who are the participants in the economy?
Form of unemployment caused by a mismatch between worker's skills and what employers need.
What is structural unemployment?
An excessive increase in the printing of money to pay a government's debts.
What is a cause for hyperinflation?
As aggregate income increases, aggregate consumption increases but not by as much as the increase in aggregate income.
What is the Keynesian Consumption Function?
GDP adjusted for inflation.
What is real GDP?
Tools used to adjust fiscal policy
What are taxes, government spending and regulations?
What are the economic cost of unemployment?
It occurs when the demand curve shifts to the right.
What is an increase in prices?
Two consecutive quarters of negative GDP.
What is a recession?
The calculation used to measure GDP.
What is C + I + G + Net Exports?
1/MPS
What is the expenditure multiplier?
The sum of frictional unemployment and structural unemployment
What is the natural rate of unemployment?
The primary causes of inflation.
What is demand-pull inflation, cost-push inflation and inflation expectations?
Author of the "Wealth of Nations".
Who is Adam Smith?
The change of income that is saved.
What is the marginal propensity to save?
-(MPC/MPS)
What is the tax multiplier?
The relationship between unemployment and inflation.
A period of high inflation with slow or negative economic growth and high unemployment.
What is stagflation?
Aggregate Output (Y) = Aggregate Expenditures
Y = C + I+ G
S + T = I + G
There is no change in business inventory levels
What are equilibrium conditions for the economy?