Macroeconomics Questions

market in which the currencies of different countries are being bought and sold

the situation when a country's imports of goods and services are greater than its exports

**-if the fund borrowed from foreigners exceed the loans made to them-increase supply of funds that can be loaned to borrowers

the use of gov taxation and expenditure policies for the purpose of achieving macroeconomic goals-conducted by Congress and the president

the price of one unit of foreign currency in terms of the domestic currencye.g. if it takes 1.50 to purchase AN english pound, the dollar-pound ____ is 1.50

a highly aggregated market encompassing all resources (labor, physical capital, land, and entrepreneurship) contributing to the production of current output-includes market for labor services, natural resources, and physical capital-business firm demand resource to produce goods and services-households supply labor and other resources to get income-payments made to household sum up to national income -income is used 4 tax, finance gov expenditures, buy goods and services

the proportion of after-tax income that is not spent on consumption-"flow" concept

the percentage of the amount borrowed that must be paid to the lender in addition to the repayment of the principal-overstates the real cost of borrowing during an inflationary period-when inflation is anticipated, an inflationary premium will be incorporated into this rate-often called nominal interest rate

the supply of currency, checking account funds, and traveler's checks. these items are coubted as mobey because they are used as the means of payment for purchases

the deliberate control of the money supply, and, in some cases, credit conditions, for the purpose of achieving macro economic goals

If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially

type of employment we should worry about

A direct relationship between consumption and disposable income

Consumption decreases as a percentage of disposable income increases

Reduces the purchasing power of the dollar but may have no impact on real income

Arbitrarily redistributes income from creditors to debtors

in 2010, Maxine's nominal income increased by 3% while the price level rose by 1%. Consequently, Maxine's real income:

Suppose the CPI is currently 126, while its value one year previously it was 120. The rate of inflation over the past year was:

Suppose a factory minimizes its average costs by producing 50 metal bars per week. It can produce this output profitably at an expected price of $4 each, corresponding to expected demand of DM. With flexible prices, which of the following is the most likely initial consequence of a change in demand?

If the natural rate of unemployment is 5.5% and the actual unemployment rate is 6.5%, then, according to Okun's law the GDP gap is: