Introductory Macroeconomics Flashcards

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What is Macroeconomics?

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Macroeconomics refers to the branch of economics that deals with economic problems or issues at the level of an economy as a whole, focusing on aggregates like national income and general price level.

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What are Consumption Goods?

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Consumption goods are goods used by consumers to satisfy human wants directly.

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Define Capital Goods.

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Capital goods are goods used in the production of other goods, either as fixed assets or as inventory.

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What are Final Goods?

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Final goods are those purchased for final consumption by consumers or for investment by producers.

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What are Intermediate Goods?

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Intermediate goods are those purchased as raw materials for further production or for resale within the same year.

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What is Stock in economics?

Back

Stock is a quantity measurable at a specific point in time, such as wealth, assets, or inventory.

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Define Flow in economic terms.

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Flow is a quantity that can be measured over a specific period of time, such as national income or change in stock.

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What is Gross Investment?

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Gross investment is the total addition made to the physical stock of capital during a period, including depreciation.

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What is Net Investment?

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Net investment is the net addition made to the real stock of capital during a period.

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What does Depreciation mean?

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Depreciation refers to the fall in value of fixed capital goods due to normal wear and tear, obsolescence, and the passage of time.