Economics > EXAM > ECON 1002 - Midterm Exam Review - Graded A (All)

ECON 1002 - Midterm Exam Review - Graded A

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Macroeconomics. The circular flow diagram. The circular flow diagram: firms produce goods and services using _____. The circular flow diagram: households own. Positive statement. Normative statem... ent. Gross Domestic Product (GDP). The national accounts. Final goods. Intermediate goods. Tangible goods. Intangible Four components of GDP. Consumption. Components of GDP: investment. Government purchases Net exports. Exports. Imports. GDP equation. GDP and housing costs. For renters... For homeowners... GDP and non-market activity. GDP and underground activity. GDP and intermediate goods. GDP and inventory investment. Nominal GDP. Real GDP. 2 types of GDP. The change in nominal GDP reflects ______. The change in real GDP is the amount _____. GDP deflator. Inflation. o Economy's overall price level is rising. Inflation rate. Consumer price index (CPI). CPI = Inflation rate = Three steps in the calculation of the CPI CPI vs GDP deflator. Three problems with CPI. Find equivalent prices from past years to current year. Real interest rate = Highest real return = highest _____. Two Categories of unemployment. Two Categories of unemployment: natural rate of unemployment. Two Categories of unemployment: cyclical unemployment. Frictional unemployment. o suit their tastes and skills (specialized surgeon). Structural unemployment. Cyclical unemployment. Labor force. Statistics Canada labor force. Employed. Unemployed. Not in the labor force. Discouraged workers. Labor force participation rate = Unemployment rate = Sectorial shifts. Union. Collective bargaining. Strike. Efficiency wages. Efficiency wages: worker effort. Efficiency wages: worker quality. Efficiency wages: worker turnover. Efficiency wages: worker health. Productivity. Factors of production. 4 things that determine productivity. Physical capital per worker k/l. Human capital per worker h/l. Natural resources per worker n/l. Technological knowledge. Technological process. Human capital. The production equation. Increasing inputs of only capital or only labor… Increasing both capital and labor... Reducing consumption = Catch-up effect Financial markets. Financial intermediaries. Bond. Stock. Budget surplus. Budget deficit. Savings. Investment. Loanable funds market. Source of loanable funds supply is. Source of loanable funds demand is. Closed economy. Savings in a closed economy. Two types of money. Commodity money Flat money. Three functions of money. Medium of exchange. Unit of account. Store of value. Liquidity. Crowding out. Money supply. Monetary policy. Four Functions of the Bank of Canada. Central bank. Reserves. Reserves = Required reserves Excess reserves = Reserve ratio, r. Money supply measures. M1 money supply. M2 money supply. M3 money supply. Bank t-account. Money multiplier. Money multiplier = If you know the money supply, divide by the ____ to find how much banks needs to buy Open market operations Buying bonds causes ______ Selling bonds causes _____ Sterilization Bank rate Overnight rate In the factors of production market, how do households and firms interact? If net employment rate was zero, what was most likely to happen? [Show More]

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