Chapter 10.2~10.3 The Financial System and the Business Cycle
Firms lacking sufficient funds to purchase new capital and/or adopt new technology may acquire
funds from households through the financial system.
Financial system: The system of financial mark
Chapter 9 ~ Unemployment and Inflation
Each month, the US Bureau of the Census conducts the current Population Survey of 60,000
households, and the US Bureau of Labor Statistics (BLS) places each adult (16 years of age or
older) from the households into o
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 2 Lecture Example
The countries of Herky and Cy produce footballs and textbooks as follows:
Herkys Production Choices
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 3 Discussion Problems
We illustrate an increase in quantity demanded by
moving up and to the left along the demand curve.
shifting the demand curve right.
moving down and to the ri
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 1 Discussion Problems
Poor people face scarcity, but rich people do not.
Only ancient economies faced scarcity; technology has eliminated scarcity in modern economies.
Chapter 1 Economics: Foundations and Modals
1. Scarcity: a situation in which unlimited wants exceed the limited resources available
to fulfill those wants.
All societies and individuals face scarcity.
Because all resources are scarce, when you choose som
Macro E Notes 1 Jan 25
Get ECON Lab up in rolling
Chapter 1 Jan 25-28 Economics: Foundations and Models
Scarcity: a situation in which unlimited wants exceed the limited resources available to fulfill
those wants. Have to make choices.
Economics: the stud
The ability to manage the time is also a crucial quality for a good manager.
Efficient working strategies are the keys to managers' success of career. Excellent
managers usually can organize their schedule systematically. Then, they can manage an
Surface, the new Microsoft tablet product, only generates 0.13% of all tablet web traffic.
However, the Google Nexus 10 as the competing product launched recently has earned seven
times the web traffic of the Surface. At this art
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 3 Practice Exercise
In which direction does the curve shift: right () for an increase or left () for a decrease?
the DEMAND curve shifts
buyers expect the future price of the product to decreas
The U.S. civilian
The U.S. civilian labor
force participation rate
U.S. real GDP per capita
had the worlds
8 -19 largest
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 9 Discussion Problems - Inflation
If the CPI equals 370 in the current year, then the price level is 270 percent higher in the current year
than it was in the base year.
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 9 Discussion Problems - Unemployment
Iggy has a Ph.D. in physics and wants to work as a physicist, but he only has been able to find a job
restocking shelves at Walmart. Therefore, the
POSITIVE or NORMATIVE?
Housing prices decrease when interest rates
Poverty is the most serious economic problem.
The government should legalize marijuana.
A higher tax on alcohol reduces underage drinking.
Iowas Legislature needs to increase the
Fall 2015 ECON:1200 Principles of Macroeconomics Chapter 8 Lecture Examples
The country of Herky produced the following in 2014:
$1 per loaf
Flour used to produce bread
$1 per pound
FINAL PROJECT -ECONOMICS
Please answer each of the following questions with a full paragraph, in your own
words, using examples where necessary.
(First 7 questions = 13 points each. Last question = 9 points. )
1) Describe the Principal-Agent problem and h
Chapter 13 Aggregate Demand and Aggregate supply Analysis
Aggregate demand and aggregate supply model: A model that explains short-run
fluctuations in real GDP and the price level.
Aggregated demand (AD) curve: A curve that shows the relationship between
Measuring the Unemployment Rate and the Labor Force Participation
the U.S. Department of Labor's Bureau of Labor Statistics (BLS) conducts
a monthly survey of 60,000 households and places each adult (age 16 or
older) from the households into one of
CPI equation: cost of basket in current year divided by cost of basket in base
a value of CPI of 316 tells us that the average price of goods and services is
216% higher than the average price in the base year
inflation rate: measures how quickly an
Using Price Indexes to Adjust for the Effects of Inflation
the price of most goods and services rise over time; they also vary across
price indexes give us a way to adjust for the effects of inflation so that we
can compare dollar values from d
Long-run Aggregate supply curve (LRAS): a curve that shows the
relationship in the long run between the price level and the quantity of real
o slope of LRAS: in the long run, the level of real GDP is determined
by the numbe
Macroeconomic Equilibrium in the Long Run and the Short Run
in the long-run macroeconomic equilibrium, the AD and SRAS curves
intersect at a point on the LRAS curve, so the economy is at potential
GDP and the natural rate of unemployment
in the short-run
The Federal Reserve System
Fractional reserve banking is not usually a problem for banks because on
a typical day, about as much money is deposited as is withdrawn.
bank run: a situation in which many depositors simultaneously decide to
withdraw money fr