death

Question 1

mpc

Answer 1

marginal propensity to consume

Question 2

mps

Answer 2

marginal propensity to save

Question 3

mpc+mps=?

Answer 3

1

Question 4

what is the spending multiplier

Answer 4

for every $1 spending in our economy a multiple of that $ will be created as money is spent and earned in successive units

Question 5

formula for multiplier

Answer 5

1/mps or 1/1-mpc

Question 6

multiplier•spending=?

Answer 6

real gdp

Question 7

are wages sticky or flexible

Answer 7

sticky

Question 8

in SRAS _ doesnt change _ changes

Answer 8

price level, national output

Question 9

in short run aggregate supply is

Answer 9

flexible

Question 10

in long run aggregate supply is

Answer 10

fixed

Question 11

factors that cause change in SRAS are what

Answer 11

change in input prices
change in productivity
change in legal institution environment

Question 12

what are two things that cause change in input prices

Answer 12

change in dometic prices

change in import prices

Question 13

what is the formula for productivity

Answer 13

total output/total input

Question 14

what is the formula for per unit production costs

Answer 14

total input/total output

Question 15

factors that cause change in LRAS curve

Answer 15

change in the stock of capital

loanable funds market

Question 16

LRAS= ?

Answer 16

full employment/full production

Question 17

real balances effect

Answer 17

purchase more output when price level is less because the purchasing power of the dollar has risen

Question 18

interest rate effect

Answer 18

price levels are low then interest rates are low price levels are high then interest rates are high

Question 19

interest rate

Answer 19

the cost of money (what you pay to borrow it)

Question 20

when interest rate are high prices are ___ and people tend to ___

Answer 20

high, save

Question 21

when interest rates are low prices are ____ and people tend to___

Answer 21

low, spend

Question 22

foreign purchases effect

Answer 22

when our prices are high relative to foreign countries prices we export less, import more, and sell more

Question 23

nonprice determinants of aggregate demand

Answer 23

1) change in consumer wealth
2) change in consumer indebtedness
3) change in consumer expectations
4) change in consumer taxes
5) change in real interest rates
6) change in expected rate of return
7) government spending
8) change in national income abroad
9) change in exchange rate

Question 24

expected rate of return is affected by what

Answer 24

change in tech
change jn excess capacity
change in expectations
change in business taxes

Question 25

government regulations make a product ___ expensive

Answer 25

more

Question 26

aggregate demand

Answer 26

curve that shows total quantity of goods demanded at different price levels

Question 27

aggregate supply

Answer 27

curve showing total quantity of goods and services supplied at different price levels

Question 28

LRAS curve

Answer 28

aggregate supply curve associated with a time period in which input prices are fully responsive to changes in price level

Question 29

SRAS curve

Answer 29

an aggregate supply curve relevant to a time period in which input prices do not change in response to changes in price level

Question 30

efficiency wages

Answer 30

wage that encourages greater effort and output

Question 31

menu costs

Answer 31

cost of printing new menus when a restaurant changes its prices

Question 32

equilibrium price level

Answer 32

price level at which the aggregate demand curve intersects the aggregate supply curve