Term
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Definition
| state a person is in if he or she cannot get a job despite being willing to work |
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Term
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Definition
| an increase in the overall price level |
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Term
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Definition
| mesures the value of final goods and services produced of a country within a year |
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Term
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Definition
| totals the dollar value of all goods and services produced in a country using CPI of that year |
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Term
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Definition
1) High crime rates
2) Depression
3) Political unrest |
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Term
| inflation: who benefits, who is harmed |
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Definition
benefit:
1)debtors
2)flexible wage earners
3)creditors with adjustable rates
Harmed:
1)savers
2)fixed income recepients
3)creditors with fixed rates |
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Term
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Definition
| unexpected changes in demand for goods and services |
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Term
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Definition
| unexpected changes in supply for goods and services |
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Term
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Definition
1)frictional
2)structural
3)cyclical |
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Term
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Definition
| workers who are searching for jobs or waiting to take jobs in the near future |
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Term
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Definition
| nderlying shift in the economy that makes it difficult for certain segments of the population to find jobs. It's typically when there is a mis-match between the jobs available and the skill levels of the unemployed. |
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Term
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Definition
| situations in which demand turns out higher than expected |
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Term
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Definition
| demand is lower than expected |
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Term
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Definition
| products that are purchased for resale or further processing |
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Term
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Definition
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Term
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Definition
1)ignores economic factors
2)doesn't look at distribution
3)need for constantly growing markets |
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Term
| Different causes of business cycle: (3) |
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Definition
1)new products
2)monetary factors
3)productivity change |
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Term
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Definition
| for every 1% gdp is over NAIRO= 2% |
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Term
| consumer price index- CPI |
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Definition
| price of market (x) divided by price of market (y) base year times 100 |
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Term
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Definition
| cpi(x) minus cpi(y) divided by cpi(y) times 100 |
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Term
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Definition
1) demand pull
2)cost push |
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Term
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Definition
| too much money chasing little supply |
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Term
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Definition
| cost of production rising |
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Term
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Definition
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Term
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Definition
| nominal income divided by cpi= real income |
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Term
| average propensity to consume (APC) |
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Definition
| fraction or percent of total income that is consumed |
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Term
| average propensity to save (APS) |
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Definition
| fraction of total income that is saved |
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Term
| marginal propensity to consume (MPC) |
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Definition
| proportion or fraction of ANY change in income consumed |
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Term
| marginal propensity to save (MPS) |
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Definition
| fraction of ANY change in income consumed |
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Term
| MPC and MPS always equals.... |
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Definition
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Term
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Definition
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Term
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Definition
1)small elasticity on prevention
2)small elasticity of substitution
3)not high carrying cost |
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Term
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Definition
| how much gdp changes in changes of spending |
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Term
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Definition
| inverse relationship of employment and inflation |
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Term
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Definition
| the purchases of capital goods also known as an investment |
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Term
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Definition
| withdraw of spending the economy's circular flow of income and expenditures |
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Term
| why are AE charts negatively sloped?(3) |
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Definition
1)real balance effect
2)interest rate effect
3)form purchase effect |
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Term
| what causes AD curve to shift? (4) |
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Definition
1)change in consumer spending
2)investment
3)change in government spending
4)change in net exports |
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Term
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Definition
| situations in which demand turns out higher than expected |
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