LSU ECON 2035 FINAL EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Okun's law
1 percent more unemployment results in 2 percent less
output
output gap
the percentage difference between actual aggregate output
and potential output
phillips curve
a curve that shows the short-run trade-off between inflation
and unemployment
potential GDP
the maximum quantity that an economy can produce given
full employment of its existing levels of labor, physical capital,
technology, and institutions
roi equation
payment/Po + ΔP/Po
,monetary theory: equation of exchange
MV = PY ==> %ΔM + %ΔV = %ΔP + %ΔY ; m= money
aggregate, v=velocity of money, p= price level, y= rGDP
financial assets
an asset that represents a claim on someone else for a
payment
types of financial assets
money, stocks, bonds, currency/foreign exchange, securitized
loans
financial institutions
connects borrowers with lenders
financial regulators
federal reserve system, securities and exchange commission,
federal deposit insurance corporation, office of the controller
of the currency
federal reserve
the "bankers bank" = loans to banks ; lender of last resort ;
deals with interest rates and money supply
functions of money
medium of exchange, unit of account, store of value,
standard of deferred payment
medium of exchange
, anything that is used to determine value during the exchange
of goods and services
unit of account
a means for comparing the values of goods and services
store of value
an item that people can use to transfer purchasing power
from the present to the future
standard of deferred payment
money must also be acceptable to make purchases today that
will be paid in the future
money
the currency that facilitates exchanges/transactions
income
earnings/payment for a specific (often short) time period
wealth
the sum of incomes over many time periods
money aggregates
overall measures of the money supply ; M1 and M2
M1
cash + checking deposits
M2
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Okun's law
1 percent more unemployment results in 2 percent less
output
output gap
the percentage difference between actual aggregate output
and potential output
phillips curve
a curve that shows the short-run trade-off between inflation
and unemployment
potential GDP
the maximum quantity that an economy can produce given
full employment of its existing levels of labor, physical capital,
technology, and institutions
roi equation
payment/Po + ΔP/Po
,monetary theory: equation of exchange
MV = PY ==> %ΔM + %ΔV = %ΔP + %ΔY ; m= money
aggregate, v=velocity of money, p= price level, y= rGDP
financial assets
an asset that represents a claim on someone else for a
payment
types of financial assets
money, stocks, bonds, currency/foreign exchange, securitized
loans
financial institutions
connects borrowers with lenders
financial regulators
federal reserve system, securities and exchange commission,
federal deposit insurance corporation, office of the controller
of the currency
federal reserve
the "bankers bank" = loans to banks ; lender of last resort ;
deals with interest rates and money supply
functions of money
medium of exchange, unit of account, store of value,
standard of deferred payment
medium of exchange
, anything that is used to determine value during the exchange
of goods and services
unit of account
a means for comparing the values of goods and services
store of value
an item that people can use to transfer purchasing power
from the present to the future
standard of deferred payment
money must also be acceptable to make purchases today that
will be paid in the future
money
the currency that facilitates exchanges/transactions
income
earnings/payment for a specific (often short) time period
wealth
the sum of incomes over many time periods
money aggregates
overall measures of the money supply ; M1 and M2
M1
cash + checking deposits
M2
