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11 Cards in this Set
- Front
- Back
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Aggregate Demand
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A curve representing the total spending in the economy at various price levels
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Aggregate Supply (Long Run)
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A curve respresenting the total ouput of a society at various price levels. This level of real output is the same at all price levels.
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Aggregate Supply (Short Run)
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A curve reprsenting the total ouptut of a society at various prices levels. This short run curve show that output can vary with price.
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Demand Pull Inflation
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Inflation caused by increases in AD
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Cost Push Inflation
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Inflation caused by increases in AS
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The Real Wealth Effect
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A change in the real value of wealth that causes spending to change when the price level changes
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The Interest Rate Effect
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Aggregate spending changes due to the rise interest rates which accompany rising price levels
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The International Trade Effect
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The change in aggregate expenditures resulting from change in the domstic price level relative to international price levels.
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The Determinants of AD
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Income, Wealth, Demographics, Taxes, Interest Rates, Expectations, Foreign Income, Foreign price levels, Government Spending
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The determinants of AS
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Resource prices, technology, human capital and expectations.
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Keynesian Aggregate Supply Curve
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A curve representing the total output of a soecity at various price levels. This curve is horizontal below potential GDP and vertical after that.
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