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The flashcards related to macroeconomics will cover these topics:
- Issues and Controversies
- Inflationary theories, measuring inflation, nominal vs. real price changes, acceleration principle, inflationary gap, exchange rates, full employment, frictional vs. structural unemployment, four types of unemployment, Phillips Curve, autonomous vs. induced investment.
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- GDP and Business Cycles
- Gross domestic product, income vs. expenditure approach, net domestic product, national income, personal income, disposable income, gross investment, net investment, closed economy, equilibrium income, multiplier effect, marginal propensity to consume, marginal propensity to save, tax vs. regular multiplier, four stages of business cycles, economic indicators, accelerator theory, liquidity preference function.
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- International Business
- Comparative vs. absolute advantage, exchange rate, managed float, purchasing-power parody, spot vs. forward exchange rate, minimizing currency risks, balance of international payments, current account, capital account, governmental trade barriers, General Agreement on Tariffs and Trade, North American Free Trade Agreement, devalued currency.
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- Fiscal Policy
- Government spending principles, fiscal policy, public goods, private goods, two principles of taxation, three classifications of taxes, direct vs. indirect taxes, incidents of taxation, value-added tax, transfer payments, automatic stabilizers, crowding-out vs. crowding-in effect.
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- Monetary Policy
- Measures of money, supply of money, equation of exchange, money
multiplier, Federal Reserve Board, aggregate demand, prime rate,
discount rate.
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