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11 Cards in this Set

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