question
Increase in Exports :: _______________ in GDP
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Increase
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GDP
answer
All goods produced within borders, may be sold outside borders
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↓ in net investment income leads to a/an _____ in the current account
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deficit
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↓ in net investment income leads to a/an deficit in the current account
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The current account includes net investment income so having less of it would create (or encourage) a deficit.
question
The current account includes
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net investment income
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Phillips Curve (Short Run)
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Increase
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Phillips Curve (long run)
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Banks will want to sell extra loanable money due to an increase in excess reserves
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According to the Phillips curve, a ↓ in unemployment rate leads to a/an ____ in inflation rate.
answer
A decrease in interest rate will increase investment spending.
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An expansionary monetary policy leads to a/an decrease in interest rates
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(Price of a market basket in the current year/ Price of a market basket in the base year) x 100
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↓ in interest rates leads to a/an ↑ in the accumulation of capital stock.
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Increase
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CPI
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difference between GNP and GDP
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↑ in CPI indicates a/an ____ in inflation rate
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GDP + the money earned by people/business from your country overseas (ex. Iphones)
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Net foreign factor incomes
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the money earned by people/business from your country overseas
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GNP
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Decrease
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Net foreign factor incomes
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Increase
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↓ in investment leads to a/an _____ in Aggregate Demand
answer
deficit
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↑ in Expected inflation rate leads to a/an ____ in the actual inflation rate
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The two accounts in the balance of payments offset one another.
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A surplus in the current account should lead to a ______ in the financial account.
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Increase
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A surplus in the current account should lead to a deficit in the financial account.
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Decrease
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↑ in deficit spending leads to a/an ______ in real interest rate
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Opportunity Cost/ Unit Gained
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↓ in inflation rate leads to a/an _____ in benefit for borrowers.
answer
C + I + G +Xn
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Per-Unit Opportunity Cost
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Nominal GDP Growth Rate - Inflation Rate
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GDP
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(Nominal GDP / GDP Deflator) x 100
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GDP Growth Rate
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(Nominal GDP/Real GDP) x 100
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Real GDP
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Unemployment Rate = (# of unemployed/# in labor force) x100
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GDP Deflator
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(# of employed and unemployed/ total working-age population) x 100
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Unemployment Rate
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Change in spending / Change in disposable income
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Labor Force Participation Rate
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Change in Saving/Change in disposable income
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MPC
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1/MPS
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MPS
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MPC/MPS
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Spending Multiplier
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Change in Spending X Spending Multiplier
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Tax Multiplier
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Change in Taxes X Tax multiplier
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Change in GDP (or AD or Income)
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1/ Reserve Requirement
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Change in GDP (or AD or Income)
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Change in Excess Reserves X Money Multiplier
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Money Multiplier
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MV = PY
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Change in the Money Supply
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Inversely Related
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Quantity Theory of Money
answer
undefined
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Current Account and Financial Account
answer
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