17-18 Vocab Macro

Front 1

Aggregate Demand Curve

Back 1

Shows the relationship between the aggregate price level and the quantity of aggregate output demanded by households, businesses, the government, and the rest of the world

Front 2

Wealth affect of a change to the aggregate price level

Back 2

Is the change in the consumer spending caused by the altered purchasing power of consumer assets

Front 3

Interest rate effect of a change in the aggregate price level

Back 3

Is the change in investment and consumer spending caused by altered interest rates that result from changes in the demand for money

Front 4

Fiscal policy

Back 4

Is the user of taxes, government transfers, or government purchases of goods and services to stabilize the economy

Front 5

Monetary policy

Back 5

Is the central banks use of changes in the quantity of money or the interest rate to stabilize the economy

Front 6

Aggregate supply curve

Back 6

Shows the relationship between the aggregate price level and the quantity of aggregate output supposed supplied in the economy

Front 7

Nominal wages

Back 7

Is the dollar amount of the wage paid

Front 8

Sticky wages

Back 8

Are nominal wages that are slow to fall even in the face of high unemployment and slow to rise even in the face of labor shortages

Front 9

Short-run aggregate supply curve

Back 9

Shows the relationship between the aggregate price level and the quantity of aggregate output supposed that exists in the short run, the time period when many production costs can be taken as fixed

Front 10

Long-run aggregate supply curve

Back 10

Shows the relationship between the aggregate price level and quantity of aggregate output supplied that would exist if all prices including nominal wages were fully flexible

Front 11

Potential output

Back 11

Is the level of real GDP the economy would produce if all prices, including nominal wages, were fully flexible