The Wealth of Nations: Defining and Measuring macroeconomic aggregates - Macroeconomic questions
20 important questions on The Wealth of Nations: Defining and Measuring macroeconomic aggregates - Macroeconomic questions
What are the 3 conditions of being unemployed?
2) Has been actively looking for a job (prior 4 weeks)
3) Currently available for work
What is measured by the national income accounts?
What is NIPA?(def)
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What is the aggregate accounting identity?
What are the 4 economic flows that connect households and firms?
2) Expenditure
3) Income
4) Factors of production (capital and labor)
What does 'income' represent? (households-firms)
What do the factors of production represent? (households-firms)
What are the 5 categories to measure expenditures?
2) Investment
3) Government Expenditure
4) Exports
5) Imports
What does 'Investment' represent?
What does 'Government expenditure' represent?
What does 'Imports' represent?
What is Capital income?
Examples: (house)(stocks, bonds)
What isn't measured by GDP?
2) Home Production
3)The underground Economy
4) Negative externalities
5) Leisure (free time, vacations)
What are Negative externalities? Example?
Example: noice, pollution,...
What are Positive externalities?Example?
Example: education (individual&society)
How to measure Real GDP?
What is measured by the Consumer Price Index?
Examples: food and beverage, housing, education,...
How to measure the CPI?
BASKET X (CY) / BASKET X (BY) x 100
(Cost basket X using current prices) / (Cost basket x, using base-year prices) x100
How to measure the Inflation rate?
IFR (Current year) = PI (ny) - PI (oy) / PI (oy) x 100
(Price Index (new year) - Price Index (old year) ) / Price Index (old year) x 100
How to measure adjusting values?
Ytat = year to adjust to
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