Econ16 cards

Tagged as: economics, government, finance, nursing, business, criminal justic, law

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1

Classical macroeconomics

The view that the market economy works well that aggregate fluctuations are a natural consequence of an expanding economy and that government intervention cannot improve the efficency of the market economy

2

Keynesian macroeconomics

The view that the market economy is inherently unstable and needs active government intervention to acheive full employment and sustained economic growth

3

Monetarist macroeconomics

The view that the market economy works well that aggergate fluctuations are a natural consequence of an expanding economy but that fluctuations in the quantity of money also bring the buisness cycle

4

Potential GDP

The value of real GDP when all the economy's factors of production-- labor capital land and entreprenuerial abality -- are fully employed

5

Production function

A relationship that shows the maximum quantity of real GDP that can be produced as the quantity of labor employed changes an all other influences on production remain the same

6

Diminishing returns

The tendency for each additional hour of labor employed to produce a successively smaller additional amount of real GDP

7

Quantity of labor demanded

The total labor hours that all the firms in the economy plan to hire during a given time period in at a given real wage

8

Demand for Labor

The relationship between the quantity of labor demand and the real wage rate when all other influences on firms hiring plans remain the same-

9

Quantity of labor supplied

The number of labor hours that all the households in the economy plan to work during a given time period at a given real wage rate

10

Supply of labor

The relationship between the quantity of labor supplied and the real wage rate when all other influences on work plans remain the same

11

Economic growth rate

The annual percentage change of real GDP

12

Real GDP per person

The real GDP divided by the population

13

Rule of 70

The number of years it takes for the level of any variabl to double is approximately 70 divided by the annual percentag growth rate of the variable

14

Labor productivity

The quantity of real GDP produced by one hour of labor

15

Economic freedom

A condition in which people are able to make personal choices thier private property is protected by the rule of law and they are free to buy and sell in markets

16

Property rights

The social arrangements that govern the protection of private property