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11 Cards in this Set
- Front
- Back
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Aggregate Supply
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amt of real output or real gdp that will be made available by sellers @ various price levels
-economy operates at full emp -output is indep. of prices |
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Long-Run Aggregate Supply
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time it takes to increase capital goods
graph= verticle line |
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Immediate Short-Run AS
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what we have is what we have
graph=horizontal line |
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Short=Run AS
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excess capacity and unemp
growth gets smaller prices inc more efficent |
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Changes in AS
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increase or decrease prod. costs
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AD increase
AD decrease |
AD inc=demand-pull inf. (right)
AD dec=recession (left) |
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AS increase
AS decrease |
AS inc=full employ. (right)
AS dec=cost-push infl. (left) |
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Consumer Spending
changes in AD |
consumer weath (left)
household borrow (right) consumer expect. personal taxes |
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investment spending
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real interest rates
expected returns: -exp about future bus. condit. -technology -degree of excess cap -business taxes |
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Government Spending
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Gov spend inc
AD inc gov spend dec AD dec |
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net export spending
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-national income abroad
-exchange rates -dollar dep -dollar app |
