Econ 110A Summary

# Econ 110A Summary - Econ 110A Summary Chapter 1: Intro...

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Unformatted text preview: Econ 110A Summary Chapter 1: Intro Terms: • 3 variables of economics: 1. Output 2. Unemployment rate 3. Inflation rate • Inflation, deflation, recession. Formulas: • Output per worker Chapter 2: Tour of Book Terms: • GDP: measure of aggregate output 3 ways of calculating: o Value added o Value of final goods and services o Sum of incomes • Nominal GDP • Real GDP • Chained GDP • Employment • Unemployment rate • Labor force • Participation rate • GDP deflator: • Consumer Price index Problems: • When to add goods to GDP, if their built outside US. • Calculate GDP using the 3 methods • Calculate nominal GDP, Real GDP, deflator, and percentage change. Formulas: • GDP (nominal and real) • Inflation rate • GDP deflator • Unemployment rate Chapter 3: The Goods Market Terms: • Compositions of GDP: Investment, government spending, consumption, net exports, inventory investment, • Inventory investment: • Demand for goods • Propensity to consume • Endogenous vs exogenous • Equilibrium in the goods market: o Production = Demand o Investment = Saving • Autonomous spedning • Balanced budget • Private saving • Public saving • Propensity to save Problems: • Consumption function: o Write and solve for equilibrium conditions o Find the value of the multiplier o Draw graph o What’s happening to autonomous spending and inventory investment? o What happens when fiscal policy is chased? • How does multiplier change? Formulas: • Total demand for goods and linear relation • Disposable income • Equilibrium condition • Autonomous spending • Private Savings • Public savings Chapter 4: Financial Market Terms: • Ben Bernake • Types of money: o Money o Commodity money o Fiat money o Currency o Checkable deposits • Supply for money •...
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## This note was uploaded on 04/14/2008 for the course ECON 110A taught by Professor Staff during the Spring '08 term at UCSD.

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Econ 110A Summary - Econ 110A Summary Chapter 1: Intro...

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