What term describes the changes in consumption resulting from a $1 change in disposable income? Marginal Propensity to Consume (MPC) Average Propensity to Consume (APC) Average Propensity to Save (APS) Marginal Propensity to Save (MPS)

Marginal Propensity to Consume (MPC)

What term describes how much saving increases when disposable income increases by a dollar? Marginal Propensity to Save (MPS) Marginal Propensity to Consume (MPC) Average Propensity to Save (APS) Average Propensity to Consume (APC)

Marginal Propensity to Save (MPS)

What term describes the change in import spending resulting from a one dollar increase in income from the economy? Marginal Propensity to Export (MPEX) Marginal Propensity to Consume (MPC) Marginal Propensity to Save (MPS) Marginal Propensity to Import (MPIM)

Marginal Propensity to Import (MPIM)

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Economics - Macroeconomics

michael1tekrzp Created by 10 mon ago

Cards in this deck(69)

What model describes a self-adjusting economy with flexible markets maintaining full employment?

What term describes the separation of real and nominal variables in economics?

Which law states that supply creates its own demand?

What is the interaction of borrowers and lenders that determines the market interest rate and the quantity of loanable funds exchanged?

What concept states that changes in the money supply only affect nominal variables and not real variables?

What effect describes how an increase in government spending leads to higher real interest rates, causing investment and consumption spending to decline?

What term describes the changes in consumption resulting from a $1 change in disposable income?

What term describes how much saving increases when disposable income increases by a dollar?

What term describes the change in import spending resulting from a one dollar increase in income from the economy?

What is the total amount of money available for an individual or population to spend or save after taxes have been paid?

What term describes income that households have received but have not spent on outputs, including taxes, savings, and imports?

What term describes spending by other sectors of the economy such as firms and government, including investment, government, and net export spending?

What formula represents the equality of leakages and injections in an economy?

What is the formula for savings in terms of disposable income and consumption?

What is the formula for disposable income in terms of total income and taxes?

What is the formula for the spending multiplier?

What multiplier tells us the final increase in real GDP that occurs as a result of a change in taxes?

What is the formula for the tax multiplier?

What paradox describes how an increase in saving will reduce GDP since it means a reduction in consumption spending?

What model shows the amount of desired spending that consumers are willing and able to purchase?

What model shows the amount of output producers are willing to produce, with its shape depending on wage flexibility?

What are the factors such as consumption spending, investment, value of the dollar, government spending, and net exports that shift the aggregate demand curve?

What are the factors such as wages, resource prices, taxes, technology, and productivity that affect aggregate supply?

What term describes the amount of factory capacity that is currently being utilized, affecting investment spending, AS, and AD?

What curve shows the inverse relationship between inflation and unemployment?

Why is the aggregate demand curve downward sloping?

What is the term for the amount by which equilibrium GDP exceeds full-employment GDP?

What effect describes how individuals cannot keep buying the same quantity of a product if its price rises while their income stays the same?

What effect describes how an increase in the price level increases the demand for money, raises interest rates, and reduces total spending and real output?

What effect occurs when a change in the price level leads to a change in the quantity of net exports demanded?

What describes how, as prices in the economy increase, firms and workers will produce a greater quantity of real GDP?

What economic theory suggests that the government can influence the supply side of the economy through income tax cuts and regulations?

What is the Neo Classical AS Curve?

What is fiscal policy? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What are automatic stabilizers?

What is discretionary fiscal policy?

What is the GDP gap?

What is a recessionary gap? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is a budget deficit?

What is national debt? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is a progressive tax system?

What is a regressive tax system?

What are twin deficits? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is the Laffer Curve? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What are the functions of money?

What are the components of measuring money?

What is commodity money?

What is fiat money? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is Gresham's Law? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is the equation of exchange?

What is the quantity theory of money? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is the monetarist model?

What is the Keynesian model of monetary policy?

What are the components of money demand?

What is transactions demand? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is precautionary demand?

What is speculative demand? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is the investment function?

What is the Federal Reserve System?

What is the FOMC?

What are open market operations?

What is discount loaning?

What are reserve requirements?

What are informal powers? Additional context: This question requires a detailed explanation covering key aspects of the topic.

Who is the Chairman of the Federal Reserve?

What are federal fund rates?

What are discount rates?

What is cost-push inflation? Additional context: This question requires a detailed explanation covering key aspects of the topic.

What is demand-pull inflation? Additional context: This question requires a detailed explanation covering key aspects of the topic.

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