• Shuffle
Toggle On
Toggle Off
• Alphabetize
Toggle On
Toggle Off
• Front First
Toggle On
Toggle Off
• Both Sides
Toggle On
Toggle Off
Toggle On
Toggle Off
Front

### How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

Play button

Play button

Progress

1/17

Click to flip

### 17 Cards in this Set

• Front
• Back
 Aggregate Supply (AS) curve shows for each given price level, the quantity of output firms are willing to supply Aggregate Demand (AD) curve shows for each given price level, the level of output at which the goods market and money markets are in equilibrium Real GDP measures changes in physical output in the economy between different time periods by valuing all goods produced in the time periods @ the same prices Nominal GDP measures the value of output in prices of the period Name the 3 main prices indexes GDP deflator Consumer Price Index Producer Price Index Nominal Interest Rate Expresses payment in current dollars on a loan or other investment Real Interest Rate return on investment measured in dollars of constant value - equal to the difference b/w nominal and the rate of inflation AD Total amount of goods demanded in the economcy If output > AD then... there is an unplanned inventory investment - as excess inventory grows, firms cut back production Marginal propensity to consume (little c/slope) increase in consumption for each \$1 increase in disposable income If demand (AD) > output... Income below Y0 - inventory is declining so production increases; IU<0 Contractionary policies reduce spending; raise interest rates Expansionary policies designed to stimulate spending endogenous variables (dependent variables) the particular value is determined w/in the economy by economic forces or value is determined w/in the model Abar = = Is the change in income greater than or less than the change in government expenditure? Given cbar>0 and 0