Chapter 13 Vocabulary Flashcards
1
Q
total demand of goods and services in the economy
- spending
A
aggregate demand
2
Q
total supply of goods and services in the economy
- production
A
aggregate supply
3
Q
some prices change but others take more time
A
short-run
4
Q
a period of time sufficient for all prices to adjust
A
long-run
5
Q
occurs when a change in the quantity of aggregate demand that results from wealth changes due to price-level changes
A
wealth effect
6
Q
occurs when price level leads to a china in interest rates and therefore in the quantity of aggregate demand
A
interest rate effect
7
Q
occurs when a change in price level leads to a change in the quantity of net exports demanded
A
international trade effect
8
Q
surprise events that change a firms’ production cost
A
supply shocks
9
Q
- C
- I
- G
- NX
A
AD shifters
10
Q
- work force (Y*)
- resources
- technology
- institutions
A
LRAS shifters
11
Q
- work force
- investor confidence
- input
- resources prices
A
SRAS shifters
