Principles of Macroeconomics: Final
Exam Review
Three Causes of inflation - ANS-1) Demand - pull inflation
2) Costs - push inflation
three) ?
Three Ways to calculate inflation - ANS-1) GDP Deflator
2) Change in CPI
3) Change in PPI
Activity fee - ANS-Workforce / overall population
Aggregate Demand - ANS-The call for of all merchandise being produced inside a rustic
APC - ANS-C / Y (earnings)
APS - ANS-S / Y (profits)
Budget Policy - ANS-Governments determine in which and the way they may achieve and
then allocate sales, thru expenditure or reserves.
COLA - ANS-Cost of leading adjustment- adjusts salaries based on changes in a
cost-of-residing index (an index that measures differences inside the price of products and
offerings, and allows for substitutions with different objects as charges vary)
CPI - ANS-Consumer charge index- exams the expenses that are being payed by means of
the customers on especially selected commodities
Demand for cash - ANS-1) Medium of alternate
2) Store of value
three) Unit of account
GDP - ANS-Gross Domestic product- the total economic fee of all final goods and services
produced in a country within a year's time
GDP Components - ANS-(C) Household intake
(I) Investments (companies)
(G) Government expenditure
(X) Net exports
GDP Deflator - ANS-Nominal / Real x a hundred
Exam Review
Three Causes of inflation - ANS-1) Demand - pull inflation
2) Costs - push inflation
three) ?
Three Ways to calculate inflation - ANS-1) GDP Deflator
2) Change in CPI
3) Change in PPI
Activity fee - ANS-Workforce / overall population
Aggregate Demand - ANS-The call for of all merchandise being produced inside a rustic
APC - ANS-C / Y (earnings)
APS - ANS-S / Y (profits)
Budget Policy - ANS-Governments determine in which and the way they may achieve and
then allocate sales, thru expenditure or reserves.
COLA - ANS-Cost of leading adjustment- adjusts salaries based on changes in a
cost-of-residing index (an index that measures differences inside the price of products and
offerings, and allows for substitutions with different objects as charges vary)
CPI - ANS-Consumer charge index- exams the expenses that are being payed by means of
the customers on especially selected commodities
Demand for cash - ANS-1) Medium of alternate
2) Store of value
three) Unit of account
GDP - ANS-Gross Domestic product- the total economic fee of all final goods and services
produced in a country within a year's time
GDP Components - ANS-(C) Household intake
(I) Investments (companies)
(G) Government expenditure
(X) Net exports
GDP Deflator - ANS-Nominal / Real x a hundred
