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12 Cards in this Set
- Front
- Back
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The level of employment depends directly on.... |
The level of total expenditures |
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If the economy is private, closed to international trade, and the government neither taxes nor spends, then real GDP equals |
Disposable income |
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What is an injection of spending into the income expenditures stream? |
Investment |
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When the economy's real GDP exceeds its equilibrium real GDP... |
There is unplanned investment in the economy |
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If saving is greater than planned investment... |
Real GDP will be greater than planned investment plus consumption |
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At the equilibrium level of GDP.. |
Unplanned changes in inventories are zero |
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Compared with a private closed economy, aggregate expenditures and GDP will... |
Increase when net exports are positive |
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An increase in the real GDP of an economy will.. |
Increase its imports and the real GDPs in other economies |
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What would increase an economy's real GDP and employment? |
An increase in the level of national income among the trading partners for this economy |
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A depreciation of the dollar will most likely result in... |
An increase in the price level |
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The amount by which an economy's aggregate expenditures must shift upward to achieve full-employment GDP is |
A recessionary expenditure gap |
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A major limitation of the aggregate expenditures model is that it... |
Assumes that prices are stuck or inflexible even as the economy moves near potential GDP |
