Aggregate demand and aggregate supply--Aggregate demand curve is a curve that shows the quantity of goods and services that households (C), firms (I), Government (G), and customers abroad (Exports-Imports) want to buy at each price level. Aggregate demand slopes downward because: Wealth Effect, Interest rate effect, Exchange rate effect. Shift in Aggregate Demand (AD). AD increases in (shifts to the right) when Consumption, Investment, Government spending, or Net Exports increase. Aggregate supply curve is a curve that shows the quantity of goods and services that firms choose to produce and sell at each price level. Sticky wage theory: Nominal wages may increase at the expected rate of inflation. Sticky price theory: Some prices adjust slowly because of menu costs. What shifts the long run supply will shift the short run supply curve plus sellers price expectations. An increase in the expected price level decreases the short run supply curve since firms and workers are likely to agree to higher wage increases which raises the cost of production. Long run equilibrium is where all three curves (AD, LRAS and SRAS) cross. Comparative Advantage-- economics is the study of scarcity (can’t get all for free, have to make choices, resources [land, labor, capital, entrepreneurship] are limited) and choice (decide what to do and not do). Comparative advantage means that an individual or country can produce at a lower opportunity cost than another producer-When individuals and countries specialize in their comparative advantage and trade, they can consume beyond their production possibilities frontiers. Perfect competition, Costs--Short run-Time before firms have enough time to enter or exit an industry. Long run-Firms have enough time to exit or leave an industry. Economic profit=total revenue-(explicit costs+implicit costs). Total revenue=price times quantity. Total costs include both explicit costs [costs that require a money expenditure such as wages and rent] and implicit costs [costs that…
Psychopharmacology (2008) 200:367–380
Adaptations in pre- and postsynaptic 5-HT1A
receptor function and cocaine supersensitivity in serotonin
transporter knockout rats
Judith R. Homberg & Sietse F. De Boer &
Halfdan S. Raasø & Jocelien D. A. Olivier &
Mark Verheul & Eric Ronken & Alexander R. Cools &
Bart A. Ellenbroek & Anton N. M. Schoffelmeer &
Louk J. M. J. Vanderschuren & Taco J. De Vries &
Received: 21 January…
MONEY AND BANKING
Why Study Money, Banking, and Financial Markets
I. Why Study Financial Markets.
A. The Bond Market and Interest Rates.
1. Financial Markets. Markets in which funds are transferred from people who have an excess of available funds to people who have a shortage.
2. Security. (Financial instrument) claim on issuer’s future income or asset.
3. Asset. Any financial claim of property that is subject to ownership.
4. Bond. Is a debt security that promises to make…
Overview of Econ 1
Microeconomics – decision making by individual economic agents
Externalities, private business, distribution of income, asymmetric information
Macroeconomics – economy as a whole
Behavior of consumers, business, government agencies, and international companies
Usually applied to national economy but can be used on any aggregation of economies
Goal of course - want to apply economic principles to the real world
Evaluating Policy – have to compare the policy’s…
Term Example (related to reading) Definition
1. Economics We see the need to buy gifts but only having little money
a science concerned with the process or system by which goods and services are produced, sold, and bought
2. Wants Each person in the story wants to give a great gift, and they want to have enough money to buy a great gift. Have a desire to possess or do (something); wish for:
3. Needs They need money to buy. Of necessity.
4. Scarcity There was a scarcity of money and of a valuable…
o How does the cost of energy (c) affect long-term growth?
o How does the energy intensity (e) affect long-term growth?
o Can expensive energy lead to economic decline? Must it?
• Backstops: renewability, efficiency
• Depletable goods
• Substitutability of capital & resources
• Low substitutability between energy & GDP, but high substitutability between various kinds of energy
• Outcomes & efficiency
o Reasons for inefficiency:
• Producer externalities: pollution,…
Interest Rate Arbitrage 462 10/14/2013
Exchange rate risk and int. business
1. Overseas operations
a. Country a – sales and profits
b. Country b – sales and profits
c. Country c – sales and profits
Consolidated financials would have to take into consideration the exchange rate of each country at a given time. If exchange rates are unfavorable then the consolidated profits will be hurt.
If a US business buys from a foreign business exchange rate must be accounted for. If an on delivery…
Econ Chapter 2 Notes
Three Economic Questions:
What goods and services should be produced?
-Not just your basic needs and wants
- Need to decide how much of the available resources should be devoted to other things
2. How should those goods and services be produced?
-All things require land, labor, and capital
- These things can be combined in different ways
- What is the most efficient way?
3. Who consumes these goods and services…
The primary authority for software revenue recognition is AICPA Statement of Position (SOP) No. 97-2, Software Revenue Recognition, which is the result of about 12 years of development work from 1985 through 1997. It applies to both public companies (according to SAB 104) and private enterprises.
Under SOP 97-2, recognition of revenue generally occurs at delivery if a four-part conjunctive test is met. Software delivery should be straightforward and require no special production, modification…
Chapter 1 Notes
1. Adam Smith- expressed the first economic ideas- An inquiry into the Nature and Causes of the Wealth of Nations Pg 3
2. Scarcity is when there is less of a good or resource freely available from nature than people would like.
3. Choice- selecting among alternatives
4. Resources- ingredients that people use to produces goods and services. Human resources, physical resources, and natural resources Pg. 4
5. Thomas Sowell
6. Objective- describes a factual situation in which the limited…