What curve shows a direct relationship between the actual price level and real GDP supplied in the short run? Aggregate demand curve Phillips curve Long-run aggregate supply (LRAS) curve Short-run aggregate supply (SRAS) curve

Short-run aggregate supply (SRAS) curve

Macroeconomic Principles: Aggregate Spending, Price Levels, and Economic Output Relationships

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Economics - Macroeconomics

michael1tekrzp Created by 10 mon ago

Cards in this deck(51)

What is the term for the relationship tracing total spending at each level of income or real GDP, represented by the total of C+I+G+(X-M)?

What model identifies where the amount people plan to spend equals the amount produced in the economy at a given price level?

What is the term for the ratio of a change in real GDP demands to the initial change in spending, calculated as 1/(1-MPC)?

What describes the relationship between the economy's price level and the amount of output firms are willing and able to supply?

What is the term for the wage measured in dollars of the year in question, representing the dollar amount on the paycheck?

What is the term for the wage measured in dollars of constant purchasing power, reflecting the quantity of goods and services it buys?

What is the term for the economy's maximum sustainable output, given the supply resources, technology, and known-how?

What is the unemployment rate called when the economy produces its potential output?

In macroeconomics, what is the period called during which some resource prices, especially those for labor, remain fixed by agreements?

What curve shows a direct relationship between the actual price level and real GDP supplied in the short run?

What is the term for the price level and real GDP that result when the aggregate demand curve intersects the short-run aggregate supply curve?

What is the term for the amount by which actual output in the short run exceeds the economy's potential output?

In macroeconomics, what is the period called during which wage contracts and resource price agreements can be renegotiated?

What is the term for the price level and real GDP that occur when the actual price level equals the expected price level and real GDP supplied equals potential output?

What is the term for the amount by which actual output in the short run falls short of the economy's potential output?

What is the term for a vertical line at the economy's potential output, representing aggregate supply when there are no surprises about the price level?

What is the term for a situation where workers and employers fail to achieve an outcome that all would prefer?

What are unexpected events that affect aggregate supply, sometimes only temporarily, called?

What are unexpected events that increase aggregate supply, sometimes only temporarily, called?

What are unexpected events that reduce aggregate supply, sometimes only temporarily, called?

What theory suggests that the natural rate of unemployment depends in part on recent history?

What are structural features of government spending and taxation that reduce fluctuations in disposable income over the business cycle called?

What is the term for deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals?

What is the term for the ratio of change in GDP demanded to the initial change in autonomous net taxes, calculated as -MPC/(1-MPC)?

What is the policy called that involves an increase in government purchases or decreases in net taxes to increase aggregate demand and reduce unemployment?

What is the policy called that involves a decrease in government purchases or increases in net taxes to reduce aggregate demand and control inflation?

Who were the group of economists that believed economic downturns were short-run phenomena corrected by natural market forces without government intervention?

What tax system automatically adjusts during economic expansion and recession to stabilize the economy?

What system automatically increases the flow of unemployment insurance taxes during economic expansion to moderate aggregate demand?

What factors contributed to the economy's recovery, including growing consumer spending and rising business optimism?

What is the term for a situation where two traders are willing to exchange their products directly?

What is generally accepted in exchange for goods and services and fulfills functions such as a medium of exchange, unit of account, and store of value?

What facilitates trade by being generally accepted by all parties in payment for goods and services?

What serves both as money and as a commodity, having intrinsic value?

What is a common unit for measuring the value of each good or service?

What retains its purchasing power over time?

What law states that people tend to trade away inferior money and hoard the best, leading to bad money driving out good?

What is the difference between the face value of money and the cost of supplying it, representing the profit from issuing money?

What is money whose face value exceeds its cost of production called?

What is a written order instructing the bank to pay someone from an amount deposited?

What type of bank account permits direct payment to a third party, for example, with a check or a debit card?

What banking system allows only a proportion of bank deposits to be backed by reserves?

What were originally papers promising a specific amount of gold and silver, and today are mere paper money issued by the Federal Reserve?

What are bank notes that exchange for a specific commodity such as gold or silver called?

What is money not redeemable for any commodity, whose status as money is conferred initially by the government?

What is U.S. currency that constitutes a valid and legal offer of payment of debt called?

What are institutions that serve as go-betweens, accepting funds from savers and lending them to borrowers?

What are financial institutions that accept deposits from the public called?

What are depository institutions that historically make short-term loans, primarily to businesses?

What are savings banks and credit unions, which are depository institutions that historically lent money to households?

What are funds that banks use to satisfy the cash demands of their customers and reserve requirements of the FED?

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Macroeconomic Principles: Aggregate Spending, Price Levels, and Economic Output Relationships

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