Ekonomi SMA/MA Kelas XI

This set of flashcards provides a summary of key concepts from the economics curriculum for high school seniors, focusing on money demand, supply, inflation, and price index calculations.

What is the definition of Money Demand?

Money demand is the amount of monetary units (in cash or demand deposits) that people wish to hold as cash at a certain period.

What are the two important functions of money according to Demand Theory?

The first function is money as a medium of exchange; the second function is money as a store of value.

Who pioneered the Quantity Theory of Money?

David Ricardo.

What does the Quantity Theory of Money propose?

It states that the amount of money in circulation is directly proportional to the price level.

What is the equation that represents Irving Fisher's version of the Quantity Theory of Money?

M.V = P.T, where M is the money supply, V is the velocity of money, P is the price level, and T is the volume of transactions.

What is the liquidity preference theory proposed by John Maynard Keynes?

It suggests that individuals hold money for three motives: transaction motive, precautionary motive, and speculative motive.

How does interest rate affect money demand?

If the interest rate increases, the demand for money decreases, and vice versa, assuming other factors remain constant.

What do increases in national income and production do to the money demand curve?

An increase shifts the money demand curve to the right.

What is the definition of Money Supply?

Money supply is the total amount of money available in an economy at a specific time.

What is the two types of money supply recognized in Indonesia?

Narrow money (M1) and broad money (M2).

What is the relationship between money supply and interest rates?

Generally, higher interest rates tend to reduce the money supply; however, the money supply is usually fixed by central bank policy.

What are the factors that influence money supply?

Interest rates, inflation levels, production levels, and the health of the banking sector.

What is inflation?

Inflation is the general increase in prices and fall in the purchasing value of money.

What is Demand-Pull Inflation?

It is inflation that occurs when aggregate demand exceeds aggregate supply.

What is Cost-Push Inflation?

It occurs when the costs of production go up, leading to an increase in the prices of goods and services.

What are the consequences of inflation on consumer savings?

Inflation can decrease the real value of interest earned on savings, making it less appealing to save money.

What is one method a central bank can use to control inflation?

Implementing a monetary policy that includes raising interest rates.

What are the main indicators for measuring price indexes?

Consumer price index (CPI), producer price index (PPI), and wholesale price index (WPI).

What is the purpose of calculating price indexes?

To measure economic activity, inflation, and changes in purchasing power over time.

What does the Laspeyres index measure?

It measures changes in price by fixing the quantities of the base year.

What does the Paasche index measure?

It measures changes in price using quantities from the current period.