Fiscal Policy
The use of taxation and government spending to reach economic goals.
fiscal policy
In search-and-matching labor market models, the condition where the inflow into unemployment equals the outflow, keeping the unemployment rate constant over time
SteadyState
The result of real estate values skyrocketing.
Increase in AD
The maximum change in the money supply given new deposits of $10 million and a reserve ratio of 10%.
$100 million
A combination of rising inflation and falling RGDP
Stagflation
This macroeconomic indicator measures the total value of all final goods and services produced within a country's borders in a given period.
GDP
In modern labor market search theory, the process that describes how unemployed workers and job vacancies come together to form employment relationships
Matching
The result of a decline in the world price of oil.
Increase in AS
Labor force divided by population.
Labor force participation rate
Necessary, but not sufficient, to achieve economic development.
Economic Growth
In GDP calculations, excluding intermediate goods prevents this problem of counting the same value multiple times.
Doublecounting
The macroeconomic relationship stating that for every percentage point increase in unemployment above its natural rate, real GDP falls by a predictable proportion.
Okun's law
The reason why we have a distinction between short run and long run aggregate supply.
Sticky wages/prices
The new CPI when inflation in the year after the base year is 5%.
105
The function of money when it is used to purchase a car.
Medium of exchange
GDP measured after removing the effects of inflation and expressed in constant prices.
Real
Individuals who are not working but are also not actively searching for jobs, so they are excluded from the official unemployment rate
Inactive
The result of increases in interest rates.
Decrease in AD
The formula that uses current year quantities and base year prices to calculate national income.
RGDP
The market where businesses and households exchange labor for wages within the circular flow model.
Resource (or factors) market?
GDP divided by a country’s population to approximate average economic well-being
Deflator
The concept describing how workers’ skills deteriorate during long periods without employment.
Depreciation
The level of RGDP that the economy would produce if all prices, including wages, were fully flexible.
LRAS (potential output)
Stocks, imports of foreign made goods, intermediate goods, products manufactured outside the Uzbekistan.
spending not included in GDP
The phase of the business cycle that follows a trough.
Recovery (expansion)