MACROECONOMICS, 14TH EDITION BY
MICHAEL PARKIN NEWEST EXAM COMPLETE
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
Demand curve - ANSWER-a curve that shows the quantities demanded at all
possible prices
Law of demand - ANSWER-consumers buy more of a good when its price
decreases and less when its price increases
Law of supply - ANSWER-principle that more will be offered for sale at higher
prices than at lower prices
GDP (Gross Domestic Product) - ANSWER-the total market value of all final
goods and services produced annually in an economy.
Choke Price - ANSWER-The exact point at which demand ceases. Buyers are not
interested in anything with a higher price.
Higher inflation - ANSWER-lower prices
Discouraged workers - ANSWER-is not looking for work, not employed
Neoclassical Growth Theory - ANSWER-y=GDP +income
all capital is investment
Diminish returns of capital: whatever you invest not getting all back because K^1/3
eventually goes to zero and growth dies out
Growth comes from technology
Macroeconomics - ANSWER-study of economic aggregates (ex. GDP)
GDP - ANSWER-total final goods and services produced in a place over a
particular period of time using market prices
, GDP deflator - ANSWER-nominal GDP/real GDP x 100
Consumer Price Index - ANSWER-Measures what households around the country
are buying (pick base year)
cost of basket goods/cost of basket goods in base year x100
4 Parts of GDP - ANSWER-Market value, final goods and services, produced
within a country, in a given time period (1/4 of year or a year)
Government expenditures - ANSWER-goods/services from firms and expenditure
on goods and services
Net investment - ANSWER-gross investment-depreciation
New Growth Theory - ANSWER-y=TK(^1/3)L(^2/3) y=c+i
i goes towards technological production "R+D"
growth is ongoing (more realistic)
capital also includes human capital
patents are institutions to protect R+D
If countries are technologically similar. - ANSWER-should converge, if not should
not converge
M1 - ANSWER-currency and checking deposits
M2 - ANSWER-currency, checking deposits, savings, time deposits under 6
months
Assets - ANSWER-use of funds, will get money for now and in future
assets: mortgages, student loans, purchased bond, other loans, reserves,
Liabilities - ANSWER-sources of funds
ex: bond sold, Checking deposits, bank capital, CDs
Bank capital - ANSWER-only thing you can adjust
MICHAEL PARKIN NEWEST EXAM COMPLETE
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
Demand curve - ANSWER-a curve that shows the quantities demanded at all
possible prices
Law of demand - ANSWER-consumers buy more of a good when its price
decreases and less when its price increases
Law of supply - ANSWER-principle that more will be offered for sale at higher
prices than at lower prices
GDP (Gross Domestic Product) - ANSWER-the total market value of all final
goods and services produced annually in an economy.
Choke Price - ANSWER-The exact point at which demand ceases. Buyers are not
interested in anything with a higher price.
Higher inflation - ANSWER-lower prices
Discouraged workers - ANSWER-is not looking for work, not employed
Neoclassical Growth Theory - ANSWER-y=GDP +income
all capital is investment
Diminish returns of capital: whatever you invest not getting all back because K^1/3
eventually goes to zero and growth dies out
Growth comes from technology
Macroeconomics - ANSWER-study of economic aggregates (ex. GDP)
GDP - ANSWER-total final goods and services produced in a place over a
particular period of time using market prices
, GDP deflator - ANSWER-nominal GDP/real GDP x 100
Consumer Price Index - ANSWER-Measures what households around the country
are buying (pick base year)
cost of basket goods/cost of basket goods in base year x100
4 Parts of GDP - ANSWER-Market value, final goods and services, produced
within a country, in a given time period (1/4 of year or a year)
Government expenditures - ANSWER-goods/services from firms and expenditure
on goods and services
Net investment - ANSWER-gross investment-depreciation
New Growth Theory - ANSWER-y=TK(^1/3)L(^2/3) y=c+i
i goes towards technological production "R+D"
growth is ongoing (more realistic)
capital also includes human capital
patents are institutions to protect R+D
If countries are technologically similar. - ANSWER-should converge, if not should
not converge
M1 - ANSWER-currency and checking deposits
M2 - ANSWER-currency, checking deposits, savings, time deposits under 6
months
Assets - ANSWER-use of funds, will get money for now and in future
assets: mortgages, student loans, purchased bond, other loans, reserves,
Liabilities - ANSWER-sources of funds
ex: bond sold, Checking deposits, bank capital, CDs
Bank capital - ANSWER-only thing you can adjust
