Term
| Calculate net domestic national product (NDP) |
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Definition
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Term
| Calculate national income (NI) |
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Definition
| NI = NDP - indirect taxes + subsidies to enterprises |
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Term
| Calculate personal income (PI) |
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Definition
PI = NI - SS contributions - net corporate income - net corporate taxes + transfers to households (where transfers to households = transfers to households and enterprises - subsidies to enterprises) |
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Term
| Calculate personal disposable income (PDI) |
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Definition
| PDI = PI - personal taxes - fines and fees |
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Term
| Calculate consumption (C) |
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Definition
| C = PDI - household savings |
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Term
| Calculate government purchases |
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Definition
Government purchases = consolidated gov. purchases + gov. income - transfers (where gov. income = taxes + ss contributions + fines and fees) |
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Term
| Calculate primary current account balance |
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Definition
Primary CA = GDP - absoption (where absorption = C + I + G) |
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Term
| Calulate overall current account balance (CA) |
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Definition
CA = Primary current account surplus + surplus on net factor income + surplus on unrequited transfers (Per in class notes: CA= X-Z= Y-A)??? |
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Term
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Definition
| (Nominal GDP/Real GDP)*100 |
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Term
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Definition
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Term
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Definition
| When output declines for 2 consecutive quarters or more. |
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Term
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Definition
| When there is growth, but not enough to keep up with population. So unemployment increases. |
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Term
| Define coordination failure |
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Definition
| When markets don’t work (in the macro environment) i.e. when unemployment is high so firms produce less (and need less workers) because ppl are consuming less (b/c they don’t have a job). |
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Term
| What is the difference between a flow variable and a stock variable? |
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Definition
| Flow is measured over time (ex. hourly wage) and stock is measured at a point in time (ex. savings at a particular moment in time, national debt) |
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Term
| Calculate "macro balances" |
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Definition
| Macro balances: (S-I)+(T-G) = (X-Z) |
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Term
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Definition
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Term
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Definition
| Real GDP = (base year Q)(current year P) + (base year Q) + current year P).... |
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Term
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Definition
| CPI: (current year P)(base year Q) + (current year P + base year Q)... |
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Term
| Calculate GDP delfator inflation |
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Definition
| GDP deflator inflation = nominal GDP groth rate - real GDP growth rate |
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