Ecn 211 exam 3 Study guides, Class notes & Summaries

ECN 211 Exam 3 With Correct and Verified Answers...

ECN 211 EXAM 3 ASU LATEST ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|AGRADE

ECN 211 Exam 3 ASU Hill Questions and Answers 100% Correct

ECN 211 Exam 3 ASU Hill questions with correct answers

What is money - The most common exchange/means of payment. EX) cash, credit card, food Cash and checkable bank deposits are most liquid Not the same thing as wealth Assets like cars, houses, securities (stocks, bonds, mutual funds) are not money Those assets have low liquidity therefore take time to convert into cash Commodity Money - money with intrinsic value; has value even if not used as money EX) gold Fiat Money - money without intrinsic value; made valuable by law. EX) paper money, p...

Recession - correct answer -a period of mildly falling incomes and rising unemployment ex. -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression - correct answer a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle - correct answer the short-run fluctuations of the economy Economic Fluctuations - correct answer -are irregular and unpredictable -most macroeconomic variables measuring i...

Financial Markets - People save money that they don't intend to spend anytime soon Businesses need money to finance capital investment The purpose of financial markets is to match up savings with investment Banks are the primary financial institutions that seek to match up savings with investment Capital Investments - Capital investment allows a country to produce more goods and services Bond Market - To raise the money, it may issue bonds Principle is what you pay to get the bond; the co...

ASU ECN 211 EXAM 3 Review (Chapter 17, 20-22) Principles of Macroeconomics,9th Ed

What is a recession? - correct answer economic contraction; two straight quarters of negative GDP growth What is a boom? - correct answer economic expansion; boom length does not predict a recession What are the characteristics of a good economy? - correct answer lots of job openings, firms are raising wages to attract workers, asset values are rising, consumers borrow and spend money freely What are the characteristics of a bad economy? - correct answer new job openings are sca...