Naked Economics Chapter 9: Keeping Score – Flashcards
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Business Cycle
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-The fluctuations in economic activity that an economy experiences over a period of time -The cycle of recession and recovery
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GDP Per Capita
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GDP divided by population
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Real Cost of Living
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Hours and minutes we must work to live
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Shortfalls of GDP
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Doesn't include non market transactions
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Social Health Index
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Social wellbeing of society taking into account 16 factors
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Human Development Index
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Measures/ranks countries' levels of socio/economic development based on life expectancy, mean years of schooling, expected years of schooling and gross national income per capita
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John Maynard Keynes
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-Author/economist -Government can use fiscal policy to "fine tune" economy -A founding father of modern day macroeconomic theory
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Economic Indicators
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Unemployment, poverty, income inequality, size of the government, budget deficit/surplus, current account deficit/surplus, national savings, demographics, national happiness
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Okun's Law
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-The relationship between an economy's unemployment rate and its gross national product (GNP) -GOP growth of 3% a year will leave unemployment unchanged
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Poverty
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-A state/condition in which a person/community lacks the financial resources and essentials to enjoy a minimum standard of life and well-being that's considered acceptable in society -Statistics regarding who is rich and who is not
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Gini Index
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A tool that collapses income inequality into a single number
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Size of Government
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Ratio of government spending to GDP
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Current Account Surplus
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A positive difference between a nation's savings and investment/ between income we earn from world and income it earns from us
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Current Account Deficit
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A negative difference between a nation's savings and investment/ between income we earn from world and income it earns from us
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National Savings
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Sum of private and public savings
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Demographics & Social Security
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More workers = more social security for retirees
