Economic institutions are institutions in charge of managing the
distribution of money, goods, and services. Examples of economic
institutions are places such as banks, government organizations, and
investment funds. I will be focusing on banks and their
The three general types of people are the employed, unemployed, and the
people that are not in the labor force at all. Anyone under the age of sixteen
no matter if they have a job or not, are considered not part of the labor force.
To put it into perspect
The consequences of inflation can be great on the people. The four
consequences of inflation outlined in the book are the decrease of buying
power of the people who hold money, the decrease of interest rate on
savings, also lower interest rate on borrower
The effects of these three concepts are known as short- run aggregate with direct
relationships to price and quantity in supply. When discussing the sticky wage effect
it can be understand why the when prices of living go down they do not stay down
The three non-production transactions are Used Goods, Financial transactions, and Transfer Payments.
When I think of the first one (Used Goods) and how it relates to me, I think of my favorite place to shop
which is Goodwill or the Craigslist, which are b
In the reading, we learned a lot about fiscal policy. It is something used to manage the economy. We see
there are four problems listed in the book, that could possibly make fiscal policy ineffective or not to the
peoples liking. The first one has really
The first part of the chapter gives an easy equation for monetary velocity, definitely not
calculus level velocity, but velocity in its own way. The equation looks like this velocity=Nominal
GDP/money supply. Both of those numerical values must be measure
The first and most important control of the money supply is the Open market
operations. The way the money is controlled, is by buying or selling government
securities, which in turn either raises or decreases the amount of money that is
loaned by the bank
Three Macroeconomic Goals
Price Level Stability
What is Inflation?
1. An increase in the supply of money
2. A general and sustained increase in prices of
the price levels
The first definition is the older a
The Aggregate Market
For an individual good, the equilibrium
price and quantity are determined by
demand and supply in the market for that
In the overall economy, the price level and
the quantity of Real GDP are determined
by aggregate demand and
The Basic Economic Problem
The basic economic problem is scarcity.
Human wants are unlimited.
Resources are limited.
Scarcity and Economics
Scarcity the problem that human wants
exceed the production possible with the
limited resources available.
1 points out of 1
A computer company builds a new factory. This is included in the _
category of GDP.
c. government purchases
d. net export
Published: April. 16, 2012 at 5:38 PM
TEGUCIGALPA, Honduras, April. 16 (UPI) - Honduras is inching
back toward economic recovery and sees more international tourism as a way out of the crisis triggered by its June 2009 coup. Honduras depends heavily on to