CLEP Macro Economics

O demand the ability and willingness to buy a

Info iconThis preview shows pages 29–31. Sign up to view the full content.

View Full Document Right Arrow Icon
o Demand: The ability and willingness to buy a specific amount of a product at different prices during a certain time period. o Demand curve: A graph showing the amount of a product that buyers are willing and able to purchase at alternative prices during a certain time period. o Demand-pull inflation: An increase in product prices occurring when total spending exceeds the economy's ability to provide goods and services at existing prices. o Deposit creation: The creation of transaction deposits by simply crediting an individual's bank account. o Depreciation: In the production process, the consumption of capital through the wearing out of plants and equipment. o Discount rate: The interest rate private banks must pay for borrowing reserves from the Federal Reserve Bank. o Discounting: This refers to the Federal Reserve's lending of cash reserves to private banks. o Discouraged workers: Individuals who are not actively looking for jobs but would seek or accept positions if they were available. o Disposable income: Personal income after personal taxes available for personal consumption and savings. o Durable goods: Products that have a long life span, which means they are expected to last longer than three years. E o Economic force: The necessary reaction to the scarcity of valuable resources.
Background image of page 29

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
o Economic growth: An increase in the amount of goods and services produced in an economy. o Economic model: Abstract framework for perceiving the real world, based on combinations of economic principles. o Economic perspective: A way of viewing the world which explains economic behavior and outcomes in terms of scarcity of resources and rational decision making based on a cost-benefit analysis. o Economic principle: Commonly agreed upon assumption about the economic world, based on accumulated results of cause-andeffect research. o Economic theory: Statement about cause-andeffect relationships derived from rigorous testing of hypotheses and generally accepted by most economists. o Economics: The study of how people use scarce resources. o Employee compensation: A factor of production used to calculate the gross domestic product using the income approach. o Employment Act of 1946: U.S. federal legislation committing the government to creating conditions in the economic market that enhance employment opportunities. o Employment rate: A statistic stated as a percentage representing the portion of the total population who are currently working. o Entrepreneurship: Using resources to produce new products and technologies or improvements on existing products and technologies. o Equilibrium: A state in the market economy in which dynamic pressures of supply and demand offset one another. o Equilibrium price: The price when there is no surplus or shortage; when quantity supplied and quantity demanded are in balance and equal. o
Background image of page 30
Image of page 31
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page29 / 37

o Demand The ability and willingness to buy a specific...

This preview shows document pages 29 - 31. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online