AP MACRO

a summary of a country's transactions with other countries, including two main elements: the balance of the payments on the current account and the balance of the payments on the financial account

decrease in value due to wear and tear, decay, decline in price, etc

a country's balance of payments on goods and services plus net international transfer payments and factor income

describes continued long-run economic growth in the face of the limited supply of natural resources and the impact of growth on the environment

a mathematical formula that states the time it takes real GDP per capita, or any other variable that grows gradually over time, to double is approximately 70 divided by that variable's annual growth rate

a reduction in the value of a currency that is set under a fixed exchange rate regime

output per worker

an increase in the value of a currency that is set under a fixed exchange rate regime

items such as roads, power lines, ports, information networks, and other parts of an economy that provides the foundation for economic activity

human made goods such ad buildings and machines used to produce other goods and services

stocks of foreign currency that governments can use to buy their own currency on the foreign exchange market

the improvement in labor created by the education and knowledge embodied in the workforce

the technical means for the production of goods and services

spending to create and implement new technologies

the difference between the value of exports and the value of imports during a given period

the difference between a country's exports and imports alone - not including services

a theory of economic growth that holds that international differences in real GDP per capita tend to narrow over time because countries with low GDP per capita generally have a higher growth rate

a hypothetical function that shows how productivity depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology

government purchases or sales of currency in the foreign exchange market

an exchange rate regime in which the government lets the exchange rate go wherever the market takes it

the amount of output that can be produced with a given amount of factor inputs

an exchange rate in which the government keeps the exchange rate against some other currency at or near a particular target

a rule governing policy toward the exchange rate

estimates the contribution of each of the major factors in the aggregate production function

the difference between a country's sales of assets to foreigners and its purchases of assets from foreigners during a given period

the price at which currencies trade, determined by the foreign exchange market

to increase in value

the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied

in an aggregate demand production function when the amount of human capital per worker and the state of technology are held fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity

to reduce the purchasing value of money

the exchange rate adjusted for international differences in aggregate price levels

the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country