1. Income 2. Population 3. A change in the price of complements 4. A change in the price of substitutes 5. Future Expectations 6. Tastes Problems with Proof-of-work The 6 Factors that cause the demand curve to shift What does GDP stand for What is GDP

The 6 Factors that cause the demand curve to shift

demand goes up cryptocurrency When the cost of borrowing goes down... How does Bitcoin Mining Work? productivity function

When the cost of borrowing goes down...

1. Technology 2. Taxes and Subsidies 3. Future Expectations 4. Competition 5. Changes in opportunity costs 6. Nature 6 Factors that cause supply to change Liquidity risk What is fractional-reserve banking? Malthusian Belief

6 Factors that cause supply to change

ECON 1P92 Final Exam

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Economics - Macroeconomics

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consumers buy more of a good when its price decreases and less when its price increases

1. Income 2. Population 3. A change in the price of complements 4. A change in the price of substitutes 5. Future Expectations 6. Tastes

when income increases, demand increases

When income rises, demand goes down

demand goes up

the quantity supplied of a good rises when the price of the good rises

1. Technology 2. Taxes and Subsidies 3. Future Expectations 4. Competition 5. Changes in opportunity costs 6. Nature

Gross Domestic Product

the market value of all final goods and services produced within a country in a given period of time

the production of goods and services valued at current prices

the production of goods and services valued at constant prices

Consumer Price Index

The cost of goods and services a typical consumer purchases

1. Substitution bias 2. Introduction of New Items - basket does not include new items 3. Quality Changes - quality improves, CPI may overstate the change in price

price in year t = (Price in year T)*[(CPI in year t)/(CPI in year T)]

the number of Canadians 16 and over who are either working or actively seeking work

1. Full-time students 2. Homemakers 3. Prisoners 4. Retirees 5. Discouraged workers

The % of the labour force that is out-of-work, and would like a job

1. structural 2. Frictional 3. Cyclical

Technological changes, or permanent decreases in demand for a certain good/service

when people leave jobs, are entering the labour force for the first time, or re-entering the labour force

An I.O.U., a promise to repay

the interest rate that a bond issuer will pay to a bondholder

Gov. and corp.s issue them to raise money. Debt-based financing.

1. Coupon rate - a regular amount paid to the bondholder 2. Maturity Date - the date the bond matures 3. Face Value - the amount the bond issuer pays at maturity 4. Price - current market price (different to its face value)

Coupon rate - annual coupon divided by bond's FV Yield - Annual coupon divided by its market price

YIELD = (COUPON)/(MARKET PRICE) *Inversely related

lower price, higher yield

Inverts

1. Residential 2. Commercial 3. Agricultural

1. Appreciation in prices 2. Rent

a loan that is used to purchase a property

the property

1. House prices always go up 2. rental income is passive income 3. It is always better to own than to rent

true

A digital currency that relies on distributed ledger technology

A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly

Satoshi Nakomoto

2009

A pizza

Computers (nodes) make up the mining network - computers compete to "mine" Bitcoin

21 million

1. new transactions recorded on a "block" of transactions 2. Computers compete to verify this block (hard math equations to solve) 3. The first computer to correctly guess the solution gets a Bitcoin 4. The "block" of transactions is then added to the Bitcoin's blockchain

A record of all past transactions in a crytocurrency

the blockchain

no, unless most computers in the network are hacked

the 'digital wallet' you use to receive bitcoin (known to others)

the 'digital wallet' you use to SEND bitcoin (only known by you)

a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions (blocks) on the distributed ledger or blockchain

takes a long time to confirm a transaction - mining has become an energy-intensive, expensive activity

validators - they stake their coins - locked up and unable to be used in transactions - validators are randomly chosen to confirm transactions - the more staked coins the higher chances of being picked - rewarded with a set transaction fee

favours wealthy coinholders - those with the most money have the most control - more susceptible to bribery attacks

how long it takes for your investment to double (not applied to bonds)

72 / interest rate = number of years

A general rise in the price of goods and services in the economy due to an increase in money supply

inflation

[(P2-P1)/P1]x100%

asset return - inflation rate

private banks

a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate

P x Y = M x V

P - price level (CPI) Y - real GDP M - money supply V - velocity of money

inflation = % change in M + % change in V - % change in Y

banks keep some money on hand and lend out the rest

A business which receives deposits and provides loans

interest rates on loans

= $ it receives in interest rates from the loan - $ it pays out on the savings deposit

The fraction of deposits banks hold in reserve

Total currency - initial deposit / r (reserve ratio)

The Bank of Canada

Yields rose, prices fell MP fell below FV Banks owed a lot of Treasures lost wealth

Occurs when a bank cannot meet its obligations to customers wanting to convert their deposits into cash

When many customers try to withdraw their deposits at the same time for fear that the bank is going bankrupt

1. Get an emergency loan from central bank or other banks 2. Identify unnecessary withdrawals 3. Suspension of withdrawals 4. Government bailout (last resort) 5. Government deposit insurance

Insures deposits up to $100K in case of bank failure

acting more recklessly when protected against risk

Controlled y private shareholders manages a nation's monetary policy

relies upon manipulating the supplies of money and credit, and altering interest rates

price stability - full employment - exchange rate sustainability - benefitting the elite

when the central bank expands the money supply

when the central bank decreases the money supply

1. Reserve requirements 2. Interest rate policy 3. open market operations 4. credit guidance

the percentage of deposits that banking institutions must hold in reserve

the use of interest rates to influence demand by both consumers and businesses

helps control interest rates

depositing at the BOC overnight

Banks borrowing from the BOC for one night

0.25

When the central bank buys or sells assets in exchange for dollars

Used to regulate the supply of credit in an industry or sector

A political entity with a monopoly on violence

The government expands during a crises, but once it ends, the government remains bigger

1. Law and order 2. defense 3. enforcing contracts 4. foreign relations

More people = more children = less resources = poorer living standards

1. Population is declining/stabilizing 2. Underestimates the development of agricultural technology

capital accumulation political and economic institutions culture and religion geography historical events

Y = A * f(L,K,H)

(# of people ages 0-14 + # of people ages 65+)/# of people ages 15-64

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ECON 1P92 Final Exam

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