Term
|
Definition
| social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity |
|
|
Term
|
Definition
| focus on facts and cause-and-effect relationships |
|
|
Term
|
Definition
| incorporate value judgments about what the economy should be like |
|
|
Term
| Law of Increasing Opportunity Cost |
|
Definition
| As production of particular good increases, opportunity cost of producing additional unit rises |
|
|
Term
|
Definition
| Consumer tastes, number of buyers, income, prices of related goods, consumer expectations |
|
|
Term
|
Definition
| Resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, number of sellers |
|
|
Term
|
Definition
| expenditures for goods and services that government consumes in providing public services and expenditures for publicly owned capital |
|
|
Term
|
Definition
| only people who are willing and able to pay for a product to obtain its benefits and when one person buys and consumes a product, it is not available for another person to buy and consume |
|
|
Term
|
Definition
| Once a producer has provided it, everyone can obtain the benefit |
|
|
Term
|
Definition
| long-run economic growth and short-tun fluctuations in output and employment |
|
|
Term
|
Definition
| business activity has reached a temporary maximum |
|
|
Term
|
Definition
| period of decline in total output, income, and employment |
|
|
Term
|
Definition
| output and employment "bottom out" at their lowest levels |
|
|
Term
|
Definition
| period in which real GDP, income, and employment rise |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Compensation of employees + Rent + Interest + Proprietor's Income + Corporate Profits + Taxes on production and imports |
|
|
Term
|
Definition
| National Income + Statistical Discrepancy + Consumption of fixed capital - Net foreign factor income |
|
|
Term
| CPI (consumer price index) |
|
Definition
| (Price of most recent market basket in the particular year/ Price estimate of market basket in past) * 100 |
|
|
Term
|
Definition
| Rise in general level of prices in an economy |
|
|
Term
|
Definition
| People 16+ who are not in institutions and who are employed or are unemployed and seeking work |
|
|
Term
|
Definition
| (Unemployed/labor force) * 100 |
|
|
Term
| Increases in Aggregate Demand |
|
Definition
|
|
Term
|
Definition
| Increases in the price level resulting from an excess of demand over output at the existing price level |
|
|
Term
| Decreases in Aggregate Demand |
|
Definition
| Recession and Cyclical Unemployment |
|
|
Term
| Decreases in Aggregate Supply |
|
Definition
|
|
Term
|
Definition
| Increases in the price level resulting from an increase in resource costs and hence in per-unit production costs |
|
|
Term
| Increases in Aggregate Supply |
|
Definition
| Full employment with price-level stability |
|
|
Term
|
Definition
| Aggregate demand curve intersects with vertical long-run supply curve and short-run aggregate supply curve |
|
|
Term
|
Definition
| deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth |
|
|
Term
| Contractionary fiscal policy |
|
Definition
| Government spending reductions, tax increases, designed to decrease aggregate demand and eliminate inflation |
|
|
Term
|
Definition
| Any item that is generally acceptable to sellers in exchange for goods and services |
|
|
Term
|
Definition
| accepts deposits, makes loans, and offers checking accounts |
|
|
Term
|
Definition
| Commercial banks, savings and loan associations, mutual savings banks, credit unions |
|
|
Term
|
Definition
| Loans are created, reserves decrease, and checkable deposits remain the same |
|
|
Term
| Expansionary Monetary Policy |
|
Definition
| Federal Reserve System actions to increase the money supply, lower interest rates, and expand real GDP |
|
|
Term
|
Definition
| securities, reserve ratio, discount rate, Term auction facility |
|
|
Term
| Balance of on capital and financial account |
|
Definition
| Sum of capital account balance and financial account balance |
|
|
Term
|
Definition
| Section of the nation's international balance of payments that records debt forgiveness by and to foreigners and foreign purchases of assets in the US and US purchases of assets abroad |
|
|
