Describe the Federal Reserve’s monetary policy process and explain the effects of monetary policy.
Describe the Federal Reserve’s monetary policy process and explain the effects of monetary policy.
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Chapter 14
1. Define GDP and explain why the value of production, income, and expenditure are the same for an economy. A.GDP Defined 1. Value Produced 2. What Produced 3. Where Produced 4. When Produced B.Circular Flows in the U.S. Economy 1. Consumption Expenditure 2. Investment 3. Government Expenditure on Goods and Services 4. Net Exports of Goods and Services 5. Total Expenditure 6. Income C.Expenditure Equals Income 2. Describe how economic statisticians measure GDP and distinguish between nominal GDP and real GDP. A.The Expenditure Approach 1. Expenditures Not in GDP B.The Income Approach 1. Wage Income 2. Interest, Rent, and Profit Income 3. From Factor Cost to Market Price 4. From Net to Gross 5. Statistical Discrepancy C.GDP and Related Measures of Production and Income 1. Gross National Product 2. Disposable Personal Income D.Real GDP and Nominal GDP E.Calculating Real GDP F. Using the Real GDP Numbers 3. Describe the uses of real GDP and explain its limitations as a measure of the standard of living. A.The Standard of Living Over Time B. Tracking the Course of the Business Cycle C. The Standard of Living Among Countries D.Goods and Services Omitted from GDP 1. Household Production 2. Underground Production 3. Leisure Time 4. Environment Quality E.Other Influences on the Standard of Living 1. Health and Life Expectancy 2. Political Freedom and Social Justice
Chapter 15
1. Define the unemployment rate and other labor market indicators. A.Current Population Survey B.Population Survey Criteria C.Two Main Labor Market Indicators 1. The Unemployment Rate 2. The Labor Force Participation Rate D.Alternative Measures of Unemployment 1. Marginally Attached Workers 2. Part-Time Workers 2. Describe the trends and fluctuations in the indicators of labor market performance in the United States. A.Unemployment Rate B.The Participation Rate 3. Describe the sources and types of unemployment, define full employment, and explain the link between unemployment and real GDP. A.Frictional Unemployment B.Structural Unemployment C.Cyclical Unemployment D.“Natural” Unemployment 3. The Real Wage Rate 4. Unemployment Benefits
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