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18 Cards in this Set
- Front
- Back
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aggregate Demand |
total real quantity of goods and services demanded in an economy. |
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aggregated demand curve |
a curve showing how the aggregated quantity demanded increase as the price level of all goods and services fall |
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aggregate supply |
total real quantity of goods and services produced in an economy |
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aggregated supply curve (long-run) |
a vertical curve showing in the long run that aggregated quantity supplied equals the full-employment level of output when cost have time to adjust to price changes, no matter what the price level. |
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aggregated supply curve (short-run) |
curve showing how the aggregated quantity supplied increases in the short tun when prices go up but factors cost do not change. |
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macroeconomics |
is the study of the economics as a whole, including unemployment inflation and cause of business cycle. |
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aggregated quantity demanded |
increases when the price level falls and decreases when the price level rises |
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short run for aggregated quantity supply |
increases when the price level rises and decreases when the price level falls.
cost and wages do not change |
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on the aggregate deman and supply diagram what do output and price represent. |
f |
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how can the price level go up and yet the "price" of each good remain unchanged ? |
f |
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how does a lower price level increase the aggregated output demanded |
f |
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when prices are lower total dollar spending may fall.does this contradict the fact that lower prices increase aggregated demand? |
f |
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does output alway go up when prices go up? |
f |
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in the great depression, prices and output fell. what shift in aggregated demand and supply would best describe the cause of this event |
a decrease in aggregated demand |
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what changes in wages will cause the short-run aggregated supply curve to shift to the left ? |
an increase in wages |
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how should the government shift the aggregated demand if it wants to raise output? what will happen to the price level |
the gov should should increase aggregate demand so that the curve shift right. price will fall |
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how will wages and other inputs cost tend to change when unemployment is above its natural rate |
wages and other factors cost will fall |
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f |
f |
