Macroeconomics flashcards

neoclassical production function

factor market equilibrium

demographics and living standards

per worker production function

malthusian model steady state

population growth and output per worker in a pandemic

wages and rents with a lower population

constraint on consumption and leisure

indifferences curves over consumption and leisure

labor market participation decision

income and substitution effects on labor supply

the effects of wages on labor market participation

labor supply curve

laffer curve

labor market equilibrium

social planner allocation

taxes on rents instead of taxes

output per worker and capital per worker

solow model diagram

real interest rates over time in the solow model

conditional convergence

differences in saving rate

technological progress

modified solow diagram

steady states for different saving rates

golden rule diagram

transitional paths to the golden rule

higher depreciation rate of capital

AK model

effects of a higher saving rate

no convergence, or divergence, across countries

human capital accumulation

initiation cost function

the steady state knowledge gap across countries

effects of stronger intellectual property rights

stylized representation of business cycles

co-movement in data plotted over time

co-movement shown in scatterplots

relative volatility

leading and lagging variables

household indifference curves

lifetime budget constraint

optimal consumption plan

consumption and income in cross-sectional data

life-cycle differences in income

temporary and permanent shocks to income

lifetime budget constraint with a higher interest rate

effects of higher interest rates on a saver

effects of higher interest rates on a borrower

market-clearing real interest rate

temporary reduction in gdp and equilibrium real interest rate

investment demand curve

optimal timing of leisure/labor supply

consumption demand and labor supply

labor market equilibrium

derivation of the output supply curve

derivation of the output demand curve

goods market equilibrium

dynamic macroeconomic model

effects of productivity growth slowdown

combined household and government budget constraint

tax cut financed by higher budget deficit

failure of ricardian equivalence

effects of timing on taxes

wealth effect on labor supply and output supply

effects of temporary fiscal stimulus

the borrowing constraint may or may not be binding

no consumption smoothing

failure of ricardian equivalence

ricardian equivalence with bequests

failure of ricardian equivalence when bequests are zero

strategic bequests and a failure of ricardian equivalence

lifetime budget constraint with different interest rates for borrowers and savers

an interest rate spread causes a household to stop borrowing

failure of ricardian equivalence with an interest rate spread

effect of higher interest spread on firms depending on external funds

effect of higher interest rate spread on borrower household

advantage of having a collateral

effects of a fall in house prices

effect of higher interest rate with and without a collateral constraint

no trade between the generations

feasible consumption plans for social planner

effects of introducing a pay as you go pension system

establishing a fully funded pension system

lower population growth and pay as you go pensions

bubble in a dynamically inefficient economy

no bubbles in dynamically efficient economies

sticky wages and unemployment

wages and effective labor input

profit-maximizing efficiency wage

efficiency wage and unemployment

decrease in labor demand

increase in firm’s ability to monitor workers

labor market implications of better monitoring technology

the value function of employment

the reservation wage

the job-finding rate

inflows and outflows to and from unemployment

increase in benefits paid to unemployed

more wage dispersion increases the value of search