Economics

Macro Economics :

Aggregate Demand: Everything demanded

Economy Measurements

Consumer Price Index

GDP: he total value of goods produced and services provided in a country during one year.

C + I + G + NX: C=Consumer spending. I=Business investments G=Government spending, NX=Net exports

Unemployment

Business Cycle

Boom and Bust

Rescission

Un-rescission

Expansion

Contraction

Supply and Demand

Supply

Demand: Peoples desire to buy a thing. People will pay more for something with more demand

Markets

Shortage When there is not enough product for the price. The price is too low and everything gets sold.

Surplus: An amount of something left over when requirements have been met; an excess of production or supply over demand.

Micro Economics

Incentive

perverse Incentive

Marginal Utility: How useful the next item is

Diminishing Marginal Utility: As you consume more the satisfaction becomes less and less until its not worth it

Behavioral Economics

libertarian paternalism

Nudges: Small things that influence decisions

Choice Architecture: How choices are presented can and will influence your decisions.

Marginal Analysis: You judge each individual thing

Scarcity: A limited supply of things

Opportunity Cost: The value of the next best option

Factors of Production

Labor

Capital

Land

Natural Resources

People That Need to Build

Beginning Equipment

Unintended Consequence

Inferior Goods

Superior Goods

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Equilibrium: When the supply and demand crate the perfect price.

Price Floors: When the government controls how low a price can get.

Price Ceilings: When the government controls how low a price can get.

Complimentary Goods: Two or more goods that are bought together. Jelly and Bread

Supplementary Goods: Two or more goods that replace each other. Jelly and Honey

Keynes

Fico Score: How likely you are to pay off debt

Monetary Policy

Hayek

Expansive Policy During Contraction

Contractile Policy During Expansion

The Fed: The organization that controls Americas money.

Keep Unemployment Low

Keep Inflation Low

Dual Mandate

Reserve Requirement

Discount Rate

Open Market Options

Paying interest on Access Reserves

What Banks Pay For Loans

New Feature!

Buying Government securities

The Government Should Steer the Economy

Governments Should Not Steer Economy

Marginal Propensity To Consume

How likely someone is to spend their money

Unemployment

Inflation

Prices of Things Rise

People who want jobs not having jobs

Measures the prices of a lot of things to measure inflation

All of everything demanded