econ midterm study guide

econ midterm study guide - Econ Midterm study guide Bequest...

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Econ Midterm study guide Bequest effect: Older people save more to give for inheritance, feel bad for younger to pay for social security Wealth Substitution effect: Older people save less b/c they know they’ll have social security MACROECONOMICS Macroeconomics is the study of the overall performance of our economy Gross Domestic Product is the market value of all finance goods ad services produced within a country in a given period of time Raw Gross Domestic Product - Measurement of real economic production of goods and services: value of all final goods and services produced within a country in a given period of time measured at same base or constant year price Components of GDP: Y = C + I + G +NX Y= Total Expenditure C = Consumption I = Investment G = Government expenditure NX = Net Exports Labor force = Any civilian adult over 16 looking for work or working Unemployment rate = # of individuals looking for work / Labor Force x 100 Types of unemployment: Frictional: Job placement, searching for jobs
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econ midterm study guide - Econ Midterm study guide Bequest...

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