FINC 409 Lecture Notes - Lecture 5: Savings And Loan Association, Federal Reserve System, Social Insurance
30 Sep 2016
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Chapter 5: policy makers and the money supply. Ideally, economic growth will lead to improved living standards for the people: for economic growth to occur there needs to be stable prices and stable and high employment levels. The relationship between the supply and demand for money affects the level of prices and economic activity the process by which the money supply is increased and decreased is important. We live in a global economic/financial environment a reasonable balance in international transactions. Gross domestic product (gdp): the output of goods and services in an economy. Rate of inflation: the percentage change in the consumer price index (cpi) over a specified period of time. Nominal gdp: the value of the goods and services measured in current dollars $. Real gdp: the value of the goods and services less the effect of inflation. If you use a base year to look at real and nominal.
