Chapter 4 - Introduction To Macroeconomics Flashcards Preview

Macro-economics > Chapter 4 - Introduction To Macroeconomics > Flashcards

Flashcards in Chapter 4 - Introduction To Macroeconomics Deck (22)
Loading flashcards...
0
Q

Recession

A

A period of decline in total output, income, and employment.

1
Q

Business cycle

A

Recurring increases and decreases in the level of economic activity over periods of years.

2
Q

Real GDP

A

The value of final goods and services produced within the borders of a given country during a given time, typically a year.

3
Q

Nominal GDP

A

The dollar value of all goods and services produced within the borders of a given country using the countries current prices during the year the goods and services are produced.

4
Q

Unemployment

A

I failure of the economy to employees labor force fully.

5
Q

Inflation

A

An increase in overall price level.

6
Q

Modern economic growth

A

The historically recent phenomenon in which nations for the first time have experienced sustained increase in real GDP per capita.

7
Q

Saving

A

The accumulation of funds that results from people in an economy spend less than their incomes during a given time period.

8
Q

Financial investment

A

Purchasing financial assets for example stocks, bonds, or mutual funds or real assets for example houses, land, factories, or constructing such assets, in the expectation of financial gain.

9
Q

Economic investment

A

Spending for the production and accumulation of capital and additions to inventories.

10
Q

Investment

A

Spending for the production an accumulation of capital and additions to inventories.

11
Q

Expectations

A

The anticipations of consumers, firms, and others about future economic conditions.

12
Q

Shocks

A

Situations in which one thing is expected to occur but in reality something different occurs.

13
Q

Demand shocks

A

Sudden, unexpected changes in demand.

14
Q

Supply shocks

A

Sudden, unexpected changes in aggregate supply.

15
Q

Inventory

A

Goods that have been produced but remain unsold

16
Q

Inflexible or sticky prices

A

Product prices that remain in place even though supply or demand has changed.

17
Q

Flexible prices

A

Product prices that react within seconds to changes in supply and demand.

18
Q

Price level

A

The weighted average of the prices of all the final goods and services produced in an economy.

19
Q

Total demand

A

The demand schedule or the demand curve of all buyers of a good or service; also called market demand.

20
Q

Short run

A

1) in macroeconomics, a period in which nominal wages and other input prices do not change in response to a change in the price level. 2) in microeconomics, a period of time in which producers are able to change the quantity of some but not all of the resources they employee; a period in which some resources are fixed and some are variable.

21
Q

Long run

A

1) in microeconomics, a period of time long enough to enable producers of our products to change the quantities of all the resources the employ; period in which all resources and costs are variable and no reserves is our costs are fixed. 2) in macroeconomics,. Sufficiently long for nominal wages and other input prices to change in response to a change in the nations price level.