ECON Exam 3 example #34165

faster than relatively rich countries; this is called the catch-up effect

an increase in the overall level of prices in the economy

the productivity of its workers

the consumer price index

John's law firm buys him a new computer

financial intermediaries

supply bonds by selling them

increased measured GDP by the value added by the restaurant's preparation and serving of the meals

interest rate as usually reported by banks

"public saving" and "government tax revenue minus government spending"

a typical consumer

the demand for loanable funds would shift right

reduces the government's debt

intermediate goods

is kept the same from year to year so that the effects of price changes are isolated from the effect of any quantity changes that might be occurring at the same time

play a role in creating an asset that people can use as a medium of exchange

fran is saving;miller is investing

interest rate corrected for inflation

for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen

the services of a U.S. government attorney valued at the cost of her salary

nominal gdp/real gdp times 100

consumption, government purchases, investment, net-exports

spending to build new houses spending on business equipment such as welding equipment spending to build new factories

how fast the number of dollars in your bank account rises over time

includes production of foreigners working in the U.S. but excludes production by U.S. residents working in foreign countries

saver or as a supplier of funds

4 percent

the price of gasoline rises due to rising oil prices

the services of a U.S. government attorney valued at the cost of her salary