Ec 313 - Study guides, Class notes & Summaries

GDP is the value of all ________ produced in a given period. final goods and services Suppose nominal GDP increased in a given year. Based on this information, we know with certainty that either real output or the price level (GDP deflator) have increased In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals $700 million Solu...

The original Phillips curve, which was based upon British data, identified a relationship betweenwage growth and unemployment. Two years after the discovery of the Phillips curve using UK data, Robert Samuelson and Robert Solow used US data to find a similar relationship betweeninflation and unemployment The Phillips curve is derived fromthe aggregate supply curve In the Phillips curve equation, an increase in expected inflation increases actual inflation becausewage earners will dema...

We study macroeconomic aggregates such as GDP and the price level because they represent the average behavior of prices and output across the economy Macroeconomics is the study of entire economies Which of the following is not a means of measuring GDP the total value of consumption Nominal GDP is the total value of goods and services produced in a given period of time. Real GDP is the amount of goods and services produced in a given time period controlling for changes in prices

what economists do all day Ans: Forecast economics upswings and downturns, Forecast prices in markets, Help firms manage risk, Help estimate values for environmental goods Economists are interested in Ans: Understanding human behavior: how and why people make decisions, And using this knowledge to help inform policy decisions and understand how markets work and why some markets don't work Economists have found that Ans: Seat belt laws lead to more wrecks, Each execution in the US pre...

Sustainable competitive advantage Ans: a competitive advantage that can't be copied easily or cheaply Two sources of sustainable competitive advantage Ans: lowest cost provider or differentiated product Four elements of a sustainable competitive advantage Ans: superior efficient, superior quality, superior innovation, superior customer responsiveness Three parts of a strategic plan Ans: business vision statement, the strategic plan, and the implementation of the strategic plan Visio...

AEC 3133 EXAM 2 MCKENZIE MAPLES LATEST UPDATE...

Scarcity Ans: A situation in which unlimited wants exceed the limited resources available to fulfill those wants Cost-Benefit Principle Ans: take an action if and only if the additional benefits from doing it or at least as great as the extra cost of doing it incentives Ans: a positive or negative environmental stimulus that motivates behavior indifference curve Ans: a curve that shows consumption bundles that give the consumer the same level of satisfaction Transaction price + Tra...

AEC 3133 EXAM 1 - 2024...

AEC 3133 EXAM 1 WITH QUESTIONS AND ANSWERS...