Full 104 page summary of Monetary Economics (ECS3701) Questions and Answers 2023

What is the Business Cycle? - -Refers to the alternating periods of expansion and recession that the U.S. economy has experienced since at least the early nineteenth century. -What is a Business Cycle Expansion? - -A period during which total production and total employment are increasing. -What is a Business Cycle Recession? - -A period during which total production and total employment are decreasing. -What is Economic Growth? - -The ability of an economy to produce increasing quantities of goods and services. -What is the Inflation Rate? - -The percentage increase in the average level of prices from one year to the next. -What determines the Inflation Rate? - -Inflation is affected by the business cycle and other long-run factors. -How is GDP (Gross Domestic Profit) defined? - -The market VALUE of all FINAL goods and services produced in a country during a period of time, typically one year. -What does BEA stand for/what do they do? - -Bureau of Economic Analysis (inside Dept of Commerce), who is responsible for compiling the data needed to calculate GDP and issues reports every 3 months. -The GDP is measured using_________, not quantities. - -VALUE. The total value, in dollar terms, of all the FINAL goods/services produced. -What is a Final good or service? - -A good or service purchased by a final user. -What is an intermediate good? - -A good or service that is an input into another good or service, such as a tire on a truck. -What time period is included in the GDP? - -Only products/services produced during the indicated time period. GDP in 2012 includes only the goods/services produced during that year. And does NOT include value of used goods, i.e. new dvd is included, when you resell it on ebay, that sale is not included. -What types of sales are included in GDP? - -Only new sales, not used. If you buy a new DVD, that is part of GDP. When you res