Chapter 11 Classical Economist world of fully utilized resources; no unused capacity and no unemployment; assumed that wages would always adjust to the full employment level Assumptions of Classical Model 1. pure competition exists; 2. wages and pr
STUDY POINTS FOR EXAM 1- CHAPTERS 7-8
CHAPTER 7 1. Calculate the unemployment rate. 2. Historical questions about unemployment rates 3. Why do official unemployment rates understate the true unemployment rates? 4. Recessions and unemployment rates.
Chapter 9 *Economic growth increases in per capita real GDP measured by its rate of change per year; a shift up and to the right on the production possibilities curve; benefits: reductions in illiteracy, poverty, illness and increases in life spans
Chapter 7 Unemployment the total number of adults (aged 16 years or older) who are willing and able to work and who are actively looking for work bu t have not found a job; number of unemployed divided by the number of workers in the civilian labor
Chapter 13 Fiscal policy the discretionary changing of government expenditures or taxes to achieve national economic goals, such as high employment with price stability; the deliberate change in government spending, government borrowing or taxes to
CHAPTER 16-17 STUDY QUESTIONS Chapter 16 Fractional reserve banking Reserve requirement Legal reserves consist of. Excess reserves are equal to. Know how to calculate required reserves and excess reserves Bank use excess reserves for. What happens to
Chapter 16 -Fractional reserve banking a system in which depository institutions hold reserves that are less than the amount of total deposits -Reserves in the U.S. Federal Reserve System, deposits held by Federal Reserve district banks for deposit