BA 161 Macroeconomics Mid Term Exam - November 20, 2013
1. Describe the three major macroeconomic goals - economic growth, low
unemployment, low inflation and discuss how each is important to the economy.
Economic growth is an increase in a countrys stand
1. Bank branches - A banks additional offices that carry out banking operations.
2. Bank holding company - A corporation that owns banks.
3. Bank notes - Originally, pieces of paper promising a specific amount of gold or silver to
anyone who pr
Aggregate expenditure line - A relationship tracing, for a given price level, spending at
each level of income, or real GDP; the total of C + I + G + (X - M) at each level of
income, or real GDP.
Consumption function - The relationship in the e
aggregate demand The relationship between the economys price level and aggregate output
demanded, with other things constant
aggregate demand curve A curve representing the relationship between the economys price
level and real GDP demanded per
American Recovery and Reinvestment Act At an estimated cost of $831 billion, the largest
stimulus measure in U.S history; enacted in February 2009
automatic stabilizers Structural features of government spending and taxation that reduce