Money Demand Supply and Interest

Study sheet excerpt

Course Outline

  1. Macroeconomics and Aggregation
  2. National Output and Equilibrium
  3. Macroeconomic Schools of Thought
  4. Aggregate Demand and Supply Model
  5. Circular Flow Models
  6. National Income Measures
  7. Real and Nominal GNP
  8. National Income Accounting Review
  9. Consumption and Saving Functions
  10. Equilibrium Income and Investment
  11. National Saving and Investment
  12. Keynesian Cross and Thrift
  13. Fiscal Policy Multipliers
  14. Open Economy and Fiscal Policy
  15. Automatic and Discretionary Stabilization
  16. Money and Its Evolution
  17. Types and Functions of Money
  18. Demand and Supply of Money

1. Macroeconomics and Aggregation

Key Concepts & Definitions

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Quiz preview

1. Which subject examines the combined effects of individual decisions on national output, employment, prices, external payments, and economic growth?

2. If consumption is C=500C=500, investment is I=200I=200, government spending is G=150G=150, exports are X=100X=100, and imports are M=80M=80, what is aggregate demand?

3. Why are intermediate goods excluded when measuring national product?

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Flashcards preview

What does microeconomics study?

The economic behavior of individuals, firms, government officials, or small groups.

What is the formula for aggregate demand?

AD=C+I+G+X−MAD=C+I+G+X-M where C, I, G, X, and M represent consumption, investment, government spending, exports, and imports.

What is national product?

The sum of the value of all final goods and services produced during the year, excluding intermediate goods.

When does macroeconomic equilibrium occur?

When aggregate demand equals aggregate supply, so national income level remains unchanged.

Money Demand Label

Amount of money households and firms want to hold

Money Supply Label

Total money available in the economy

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