Exam 4 Flashcards
1
Q
E = ? (Closed)
A
E = C(y-T) + I(r) + G
2
Q
E > Y
A
Firm Sales > Firm Production, Inventory Up, Firm Production Down
3
Q
E < Y
A
Firm Sales < Firm Production, Inventory Down, Firm Production Up
4
Q
Government Purchases Multiplier
A
ΔY/ΔG = 1/(1-MPC)
5
Q
Tax Multiplier
A
ΔY/ΔT = -MPC/(1-MPC)
6
Q
IS
A
investment–saving
7
Q
IS Derivation
A
Derived from Keynesian Cross & Capital Market
8
Q
IS Shifter
A
ΔE curve in Keynesian cross
E out IS up
Fiscal Policy
9
Q
Real Money Balance
A
M/P
10
Q
Money Demanded
A
L(r,y)
11
Q
quantity of MD Shifters
A
Interest (r)
Output (y)
12
Q
LM is the ______ Market
A
Money
12
Q
IS Curve = _______ Market
A
Goods
13
Q
LM Shifters
A
MONETARY POLICY
14
Q
pi
A
Inflation
