Business Administration - Accounting & Financial Planning ECN502 Study Guide - Final Guide: Fractional-Reserve Banking, Demand Curve, Monetary Policy

• School: Seneca College
• Department: Business Administration - Accounting & Financial Planning
• Course: Business Administration - Accounting & Financial Planning ECN502
• Professor: Sandra Wellman

Document Summary

Linear ppc: concave ppc, constant opportunity cost. Invisible hand: determinants of demand, determinants of supply. The output of a country: double counting, transfer payments. Output gap: actual output vs. potential gdp. Shifting the ad curve: understanding the as curve, as shifters. The meaning of economic growth: how to measure growth, determinants of economic growth. 13: kinds of money, near money, money. Objectives and functions of the bank of. Fractional reserve banking system: target reserve ratio, desired reserves, primary and secondary reserves. The creation of money: excess reserves, money multiplier. Keynesian theory of money: transaction demand, asset demand. Specific tools of monetary policy: open market operations, bank rate. Production possibility (p-p) schedule: a table showing various combinations of goods and services that can be produced with full utilization of all resources and a given state of technology. The rate of change between two goods remain unchanged: concave ppc.