Fredrick Ehrlich

[Fredrick Ehrlich @EhrlichFredrick]

Fiscal Policy is the setting of the level of government spending and taxation by government policy makers. This acts to alter different aspects of the economy which can stabilize it. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

The money I use on on groceries, coffee, and christmas gifts is included in marginal propensity to consume. The marginal propensity to consume is the money house holds consume rather than save. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

The purchasing power parity is a theory of exchange rates where a unit of any currency should be able to buy the same quantity of goods in all countries #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If I were to invest in a company from Australia selling kangaroos I would be increasing the net capitol outflow of the US. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

The difference between nominal unit and real units is that nominal is measured in monetary units while real is measured in real units. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If the GDP of an economy is constant then inflation rate equals the money growth rate #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

The Federal Reserve is the central bank of the US. A central bank is an institution that oversees the banking system and regulates money supply. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

When I deposite money into the bank a fraction of the deposit goes into reserves the rest is used to make loans. This is known as a fraction reserve banking system. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

A financial System is the group of institutions that help match the saving of one person with the investment of another. By going putting money in the bank I am making use of a financial system. #UMDecon @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

The phenomena that poor counties grow faster rich countries is called the catch up effect. If the income gap between poor and rich countries shrink living standards should converge. #UMDecon @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If an economy has a constant long run equilibrium of unemployment, this is called a steady state. #UMDecon @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If an employee has a tendency of shirking at their job, a higher wage could give them incentive to take their job seriously. #UMDecon @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If Covid 19 resurges and work places shut down the unemployment rate would like increase from the natural rate of unemployment and go into cyclical unemployment. #econUmd @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If I graduate collage and get a degree in Marketing I would like look for a job for a company that pertains to my degree. This is called frictional unemployment. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If scrub daddy has a factory overseas and imports scrub daddy's to the US the CPI would rise while the GDP deflator would remain the same. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If apple is making an a new iPhone, the goods needed to make the iPhone are considered capitol goods and are included in the CPI. #econUMD @LuiggiDonayre @econ_ta

[Fredrick Ehrlich @EhrlichFredrick]

If I worked at a grocery store I could measure a costumer's cost of living. I could use customer price index and divide the cost all their groceries and the price of what the groceries would have been in a base year. #econUMD @econ_ta @LuiggiDonayre

[Fredrick Ehrlich @EhrlichFredrick]

If I am looking to find inflation rates I would find the real GDP. To find the Real GDP one should use prices from a base year and quantities from specific years. #econUMD @econ_ta @LuiggiDonayre

[Fredrick Ehrlich @EhrlichFredrick]

If the price of Doritos goes up then the quantity of Doritos supplied should rise as-well. This represents the Law of Demand. @econ_ta @LuiggiDonayre #UMDecon

[Fredrick Ehrlich @EhrlichFredrick]

If I am making cookies to sell at a bake sale the eggs, flower, and sugar would be the intermediate goods and the cookies would be the final good. @econ_ta @LuiggiDonayre #UMDecon