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ECO403 Short Notes and Solved Quiz

Here we have ECO403 complete Solved Quiz and Short Notes for Mid Term exam. You Can Also Download ECO403 Mid Term Papers, ECO403 Short Notes, ECO403 Assignment Solutions, Lecture Wise Questions Answers Files, ECO403 Solved MCQs, ECO403 Solved Quiz , ECO403 Solved Mid Term Subjective Papers ,ECO403  Solved Mid Term Objective Papers from Virtual Study Solutions For Preparation of Mid Term Papers.

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ECO403 Short Notes

Actual budget:

The amount spent by the Federal government (to purchase goods and services and for transfer payments) less the amount of tax revenues collected by it in any fiscal year; and which can not reliably used to determine whether it is pursuing an expansionary or fiscal policy.
Actual deficit :
The size of federal government’s budget deficit actually measured or recorded in any given year.
Actual investment :
The amount which business firms do invest: equal to planned investment plus unplanned investment.
Actual reserves :
The funds which a member bank has on deposit at the Federal Reserve Bank of its district.

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Adaptive expectation theory :
The idea that people determine their expectations about future events (e.g. inflation) on the basis of
past and present events (rates of inflation) and only change their expectations as events unfolds.
Aggregate demand :
A schedule or curve which shows the total quantity of goods and services demanded (purchased) at
different price levels.
Aggregate supply :
A schedule or curve showing the total quantity of goods and services supplied (produced) at different
price level.

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Anticipated inflation :
Inflation at a rate equal to the rate expected in that period of time
Asset demand for money :
The amount of money people want to hold as a store of value (the amount of their financial assets
they wish to have in the form of money); and which varies inversely with the rate of interest.
Average propensity to consume :
Fraction of disposable income which households spend for consumer goods and services;
consumption divided by disposable income.
Average propensity to save :
Fraction of disposable income which household save; saving divided by disposable income.

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