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ECO3203 Final Exam 1 - Coggle Diagram
ECO3203 Final Exam 1
Chapter 11-IS Curve and The Good Market
Planned Expenditure
MPC-Marginal Propensity To Consume
Calculating Keynesian Cross Equilibrium Output- Solving For Y
Y=E=C+I+G
Policy Impacts On Equilibrium Output Level
Tax Cut
MPC/1-MPC
Government Spending Increase
1/1-MPC
IS Curve Vs LM Curve
IS Curve
As Interest Rate Falls Investment Increases So The IS Curve Slopes Downward
The IS Curve Summarizes the relationship between interest rate and level of income
Lower Interest Rate=More Output and Vice Versa
Steep vs Flat IS Curve
If interest rate change produces large change in income then the IS curve is elastic and flat
If investment spending is not sensitive to interest rate then the IS Curve is inelastic and steep
LM Curve
What Is Real Money? Who Controls The Money Supply?
Real Money Demand is negatively related to interest rate and positively related to income
Three Ways The Fed Manages Money Supply
Modify Reserve Requirements
Changing Short Term Interest Rates
Decrease Money Supply by raising interest rates
Increase money supply by lowering interest rates
Conduction Open Market Operations
Buying and Selling Bonds
Chapter 2-National Income Account
GDP
GDP VS GNP
GDP Measures Within Borders-GNP Measures Citizens
Nominal Vs Real GDP
Nominal uses current prices-Real uses constant prices with a base year
Calculate Nominal GDP, Real GDP, GDP Deflator
CPI vs Debt Deflator
Unemployment vs Out Of Labor Force vs Discouraged Worker
Calculate Unenployment
Number Unemployed/ Number In Labor Force * 100
Calculate Labor Force Participation Rate
Number on Unemployed + Employed/ Population Total * 100