Part 2. Matching: Match the Key terms in Column "A" with the definitions in Column "B" by writing the block letter of your choice from Column "B" in the space provided under "A" and match the definitions in column "B" with the meanings or examples or facts in column "C" by writing the lower letter case of your choice in the space provided under column "B". Column "A" Column "B" Column "C" 1. Aggregate A. The value of all assets owned, both monetary and a. A pictorial representation of the negative or inverse nonmonetary. relationship that shows the total quantity of goods Demand B. The price of one currency in terms of another & services demanded at different price levels, currency. cetens panbus 2. Aggregate C. The quantity of goods and services that can be b. The sum total of cash and non-cash assets or Demand (AD) Curve purchased with a unit of money. Purchasing power and properties owned. the price level are inversely related: As the price level c. The price of a U.S.D.($) in terms of a foreign goes up (down), purchasing power goes down (up). currency. For example: $1 = 16 MXN Peso. 3. Real Balance D. The change in foreign sector spending as the price d. The changes in private sector spending by Effect level changes. consumers and businesses as interest rate 4. Monetary Wealth E. The changes in household and business buying as changes the interest rate changes (in turn, a reflection of a e. The total quantity of goods and services change in the demand for or supply of credit brought consumers are willing and able to buy in the entire 5. Purchasing on by price level changes). economy at different price levels, ceteris panbus. Power F. The value of a person's monetary assets. Wealth, as The change in the value of imports and exports as distinguished from monetary wealth, refers to the value the price level changes. of all assets owned, both monetary and nonmonetary. 6. Interest Rate 9. The amount of cash on hand, that is, wealth in the In short, a person's wealth equals his or her monetary form of "the most liquid asset" known to a human Effect wealth (e.g., $1,000 cash) plus nonmonetary wealth being. (e.g., a car or a house) h . The change in the amount of goods and services 7. International G. The change in the purchasing power of dollar- that money can buy as a result of changes in the denominated assets that results from a change in the Trade Effect price level. price level. Measures the strength or weakness of money H. The quantity demanded of all goods and services based on the amount of goods & services money 8. Wealth (Real GDP) at different price levels, ceteris paribus. can buy that depends on the level of prices in the I. A curve that shows the quantity demanded of all economy. As the price level rises (falls), the goods & services (Real GDP) at different price levels, amount of goods and services that can be 9. Exchange Rate cetens paribus. purchased decrease (increase)