ECON EXAM 4

The 3 goals of macroeconomics

• Too much money chasing too few goods.
• It will encourage other interest rates to rise, and result in less spending and more saving by households and businesses
• economic growth , price stability, full employment
• twelve federal reserve banks

long run trend or potential GDP

• 3 percent
• A good used as money that also has a value independent of its use as money
• 53%
• employed + Unemployed

aggregate means

• Money is useful because it can provide a standard of value in borrowing and lending
• money
• total amount
• monetary

GDP =

• aggregate supply
• Price stability; maximum
• out of the labor force
• $28,084 or less

why the continued growth ?

• overprinting by governing authorities to pay for debts
• U.S. is very good at producing stuff and has continued to get better
• lower unemployment rates
• federal funds rate

we have higher worker productivity that measures

• overprinting by governing authorities to pay for debts
• you did not work for pay AND actively looked for work in last 4 weeks
• 53%
• output per unit of input

determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework

• The Fed uses it to steer the federal funds rate into the FOMC’s target range.
• determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework
• work at all for pay during survey week
• the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate

U.S. has a ? percentage literacy rate

• FED (FOMC)
• 99
• Interest on reserve balances rate
• responsible for a key tool- sets the range for the federal funds rate (FFR)

some districts have only a 50 to ?

• employed
• monetary manipulate money supply to change interest rates while fiscal policy manipulate government spending and taxes
• natural unemployment rate
• 60 graduation rate

? of these over 25 y/o have a high school degree

• 85%
• commercial banks and “thrift” or saving institutions
• decentralized
• The economy has experienced 5% inflation; average prices are 5% higher.