Macroeconomics

Demand Curve

A locus of points each giving the maximum quantity purchased by the group, of a good or service at a given price per unit of time.

Demand Schedule

Demand data place on a chart or graph (Price and Quantity).

Supply

Is a relationship between various quantities of goods and services producers are willing and able to produce at various prices.

Demand

Is a relationship between various quantities of goods and services that consumers are willing and able to purchase at various prices.

Kaynes-3

A nation's productive capacity determines its potential GDP, but its actual GDP is determined by its Aggregate expenditures (C +Ig).

Kaynes-2

An equilibrium level of GDP can occur while resources are less than fully employed or under utilized, therefore The Great Depression of the 1930's can be viewed as a static condition rather than a self-correcting, transition period.

Kaynes

There are 3 distinguishing characteristics that differentiate Kaynes from his classical counter parts.

Gross Domestic Product (GDP)

Total market value of all final goods and services produced domestically during the year.

Law of Supply

Producers are willing and able to produce more goods and services at higher prices (total revanue).

Economics

Economics is the social science that studies the allocation of scarce resources for the creation, distribution, and consumption of goods and services.

Personal Income

Total pre-taxed dollars individuals receive.

Law of Demand

Consumers are willing and able to purchase more goods and services at lower prices (per unit price).

National Income Accounts

GDP: Total market value of all final goods and services produced domestically during the year- Capital Consumption Allowance = NDP: Net market value of all final goods and services produced domestically during the year - Indirect Business Taxes - Net Foreign Factor Income = National Income: Payments to the factors of production for productive services performed during the year - Retained Coporate Earnings- Corporate Taxes - Pay Roll Taxes ( Social Security Taxes), Transfer Payments, and Interest on the National Debt = Personal Income: Pre-taxed dollars individuals receive - personal taxes = Disposable Income: The amount of money individuals have

National Income

Payments to the factors of production for productive services performed during the year.

Supply Schedule

Supply data placed on a chart or graph (Quantity and Price).

Disposable Income

The amount of money individuals have.

Supply Curve

A locus of points each giving the minimum price that will bring forth a given quantity of a good or service per unit of time.

Kaynes-1

General price level in the economy is assumed to be rigid or inflexible downward, therefore, a change in nominal GDP is synonymous with a change in real GDP under most conditions.

Net Domestic Product (NDP)

Net market value of all final goods and services produced domestically during the year.