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Exam 2 | ECON - Macroeconomics 1 - Introduction, Quizzes of Introduction to Macroeconomics

Chapters 5-10 Class: ECON - Macroeconomics 1 - Introduction; Subject: Economics; University: Tallahassee Community College; Term: Forever 1989;

Typology: Quizzes

2009/2010

Uploaded on 03/26/2010

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TERM 1
Recession
DEFINITION 1
2 Consecutive quarters in which real GDP drops.
TERM 2
GDP
DEFINITION 2
GDP final value of all goods and services in a given time
period
TERM 3
Inflation
DEFINITION 3
Inflation In economics, inflation is a rise in the general level
of prices of goods and services in an economy over a period
of time.
TERM 4
Deflation
DEFINITION 4
Deflation In economics, deflation is a decrease in the general
price level of goods and services.
TERM 5
disinflation
DEFINITION 5
disinflation Disinflation is a decrease in the rate of inflation -
a slowdown in the rate of increase of the general price level
of goods and services in a nation's gross domestic product
over time.
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Recession

2 Consecutive quarters in which real GDP drops. TERM 2

GDP

DEFINITION 2 GDP final value of all goods and services in a given time period TERM 3

Inflation

DEFINITION 3 Inflation In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. TERM 4

Deflation

DEFINITION 4 Deflation In economics, deflation is a decrease in the general price level of goods and services. TERM 5

disinflation

DEFINITION 5 disinflation Disinflation is a decrease in the rate of inflation - a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Phillips curve

Phillips curve In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. TERM 7

stagflation

DEFINITION 7 stagflation Simultaneous high levels of unemployment and inflation TERM 8

frictional unemployment

DEFINITION 8 frictional unemployment natural rate of UE. .. People who are between jobs TERM 9

structural unemployment

DEFINITION 9 structural unemployment obsolete or out dated job skills Structural unemployment involves a mismatch between the sufficiently skilled workers looking for jobs and the vacancies available. TERM 10

cyclical unemployment

DEFINITION 10 cyclical unemployment tied to business cycle... Emerges during recession

MPC

MPC Marginal Propensity to consume TERM 17

MPS

DEFINITION 17 MPC Marginal Propensity to save TERM 18

Multiplier Effect

DEFINITION 18 Total impact of a change in govt spending/taxes by the time it works its way through the economy TERM 19

Progressive Tax

DEFINITION 19 Progressive Tax A progressive tax is a tax by which the tax rate increases as the taxable amount increases. TERM 20

Regressive Tax

DEFINITION 20 Regressive Tax A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Flat Tax

Flat Tax A flat tax (short for flat rate tax) is a tax system with a constant tax rate. TERM 22

Expenditure Method

DEFINITION 22 Expenditure Method Takes all expenses in Economy +Personal Consumption 67% ($ spent @ wal mart, car dealer, movie theatre...) +Government Expenditures 18-25% +Gross Private Domestic Investments 8-12% ($ spent by businesses( % for capital)) +Net Exports (exports - imports) TERM 23

Import

DEFINITION 23 Import Foreign produced good/service consumed domestically Toyota sold in KY TERM 24

Export

DEFINITION 24 Export domestically produced good/service consumed in a foreign country Corvette sold in England balls TERM 25

Nominal GDP

DEFINITION 25 Nominal GDP GDP that hasnt been adjusted for changes in price level