ECO403 Short Notes and Solved Quiz
ECO403 Short Notes
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.
The amount which business firms do invest: equal to planned investment plus unplanned investment.
The funds which a member bank has on deposit at the Federal Reserve Bank of its district.
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.
A schedule or curve which shows the total quantity of goods and services demanded (purchased) at
different price levels.
A schedule or curve showing the total quantity of goods and services supplied (produced) at different
Inflation at a rate equal to the rate expected in that period of time
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.
Fraction of disposable income which households spend for consumer goods and services;
consumption divided by disposable income.
Fraction of disposable income which household save; saving divided by disposable income.
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