Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
After tax income of consumers, personal income less personal taxes
|
disposable income
|
|
|
total consumption in a given period divided by total disposable income
|
average propensity to consume
|
|
|
the fraction of each additional dollar of disposable income spent on consumption; the change in consumption dived by the change in disposable income
|
marginal propensity to consume
|
|
|
the fraction of each additional dollar of disposable income not spent on consumption 1 - mpc
|
marginal propensity to save
|
|
|
a change in consumer spending caused by a change in the value of owned assets.
|
wealth effect
|
|
|
a mathematical relationship indicating the rate of desired consumer spending at various income levels.
|
consumption function
|
|
|
consumption expenditure in excess of disposable income; a negative saving flow
|
dissaving
|
|
|
The value of total output produced at full employment
|
full-employment gdp
|
|
|
the value of total output produced at macro equilibrium
|
equilibrium gdp
|
|
|
the amount by which equilibrium gdp falls short of full employment gdp
|
recessionary gdp gap
|
|
|
The amount by which equilibrium gdp exeeds full employment gdp.
|
inflationary gdp gap
|
|
|
an increase in the price level initated by excessive aggregate demand
|
demand pull inflation
|
