Term
|
Definition
| all of the people working/looking for work (employed or unemployed) |
|
|
Term
| What is the paradox of thrift? |
|
Definition
| if everyone saves more money during times of recession, then aggregate demand will fall and will in turn lower total savings in the population because of the decrease in consumption and economic growth. |
|
|
Term
| How should govs behave w/markets? |
|
Definition
| should typically leave markets alone |
|
|
Term
| Is long-run growth studied in macro, micro or both |
|
Definition
|
|
Term
| wats an economic aggregate |
|
Definition
| an economic measure that summarizes data across diff mrkts for goods, services, workers and assets |
|
|
Term
| what is the business cycle? |
|
Definition
| the short-run alternation between economic downturns, known as recessions, and economic upturns, known as expansions |
|
|
Term
|
Definition
| a very deep and prolonged downturn |
|
|
Term
|
Definition
| period in which real output and employment are increasing above the long term trend of the economy |
|
|
Term
|
Definition
| the # of ppl currently employed in the economy |
|
|
Term
|
Definition
| the # of ppl who are actively looking for work but're unemployed |
|
|
Term
|
Definition
| the sum of employment and unemployment |
|
|
Term
| wat're discouraged workers? |
|
Definition
| nonworking pppl who are capable of working but have given up looking for a job |
|
|
Term
|
Definition
| the # of ppl who work during a recession but receive lower wages than they would during an expansion due to fewer number of hours (U) lower-paying jobs |
|
|
Term
| whats the underemployment rate? |
|
Definition
| the %age of the total # of ppl in the labor force who are employed but desire to have additional hours of work in their present job or in an additional job or to have a new job with longer working hours |
|
|
Term
|
Definition
| the economy's total production of final goods and services for a given time period |
|
|
Term
| to what does stabilization policy refer? |
|
Definition
| policy efforts undertaken to reduce the severity of recessions and to rein in excessively strong expansions |
|
|
Term
|
Definition
| a type of stabilization policy that involves changes in taxation or in gov spending, or both |
|
|
Term
| what is secular long-run growth? |
|
Definition
| aka. long-run growth, the sustained upward trend in aggregate output over several decades |
|
|
Term
| what is a nominal measure? |
|
Definition
| a measure that hasn't been adjusted for changes in prices over time |
|
|
Term
|
Definition
| a measure that has been adjusted for changes in prices over time |
|
|
Term
| whats the aggregate price level? |
|
Definition
| the overall price level for final goods and services in the economy |
|
|
Term
| what do we call an inflation? |
|
Definition
| a rising aggregate price level |
|
|
Term
| what do we call a deflation? |
|
Definition
| a falling aggregate price level |
|
|
Term
| when does the economy have price stability/ |
|
Definition
| when the aggregate price level is changing only slowly |
|
|
Term
| whats the inflation rate? |
|
Definition
| the annual percent change in the consumer price index (CPI) or aggregate price level |
|
|
Term
|
Definition
| an economy that does not trade goods, services, or assets with other countries |
|
|
Term
|
Definition
| one that trades goods, services, and assets with other countries |
|
|
Term
| whats open-economy macroeconomics? |
|
Definition
| the study of those aspects of macro that are affected by movements of goods, services, and assets across national boundaries |
|
|
Term
| whats the exchange rate; where is it introduced? |
|
Definition
| between two national currencies is the value of one in terms of the other; open-economy macro |
|
|
Term
| what's a country's trade balance? |
|
Definition
| the difference between the value of the goods and services it sells to other countries and the value of the goods and services it buys from other countries |
|
|
Term
|
Definition
| international movement of financial assets |
|
|
Term
|
Definition
|
|
Term
| Whats the peak of a business cycle |
|
Definition
| peak--business activity has reached a temporary maximum, and real output is close to capacity. |
|
|
Term
|
Definition
| period during which economic activities rise after the economy has hit the bottom. Real output, employment, profits, and earnings are at their lowest levels. |
|
|
Term
|
Definition
| period of decline in total output, income, and employment lasting 6 months or more |
|
|
Term
| wats the employment rate? |
|
Definition
| proportion of persons in the labor force who did not work or had no job/business during the reference week and were reportedly looking for work. |
|
|
Term
| wats unemployment rate; wats it =?; how often it calculated? |
|
Definition
| %age of the labor force that is unemployed; [(Unemployed/Labor Force)* 100]; monthly |
|
|
Term
| Unemployment increases during _______ and decreases during _______ |
|
Definition
|
|
Term
|
Definition
| lowest point of a business cycle. Real output, employment, profits, and earnings are at their lowest levels |
|
|
Term
| what the two stabilization policies can the gov use to prevent recessions or reduce severity? Explain both |
|
Definition
| fiscal or monetary: f--attempts to boost economic activity by changing taxes, or government spending, or both; m--attempts to boost economic activity by changing the quantity of money or interest rates. |
|
|
