6423769676 | Aggregate demand | The total demand for goods and services over varying prices within the economy, including componenting such as household consumption, business investment, government spending & net exports., the amount of goods and services in the economy that will be purchased at all possible price levels | 0 | |
6423769677 | Real balances effect | An increase (or decrease) in the price level decreases (or increases) the purchasing power of financial instruments, which in turn decreases (or increases) the aggregate quantity demanded | 1 | |
6423769678 | Interest rate effect | The changes in household and business buying as the interest rate changes (in turn, a reflection of a change in the demand for or supply of credit brought on by price level changes) | 2 | |
6423769679 | Foreign purchases effect | inverse effect of domestic prices compared to foreign prices. If goods of foreign countries decrease in regard to domestic prices, net exports will decrease | 3 | |
6423769680 | Determinants of aggregate demand | Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve | 4 | |
6423769681 | Aggregate supply | The total amount of goods and services in the economy available at all possible price levels | 5 | |
6423769682 | Immediate short run aggregate supply curve | A aggregate supply curve at which real output, but not the price level, changes when the aggregate demand curve shifts; a horizontal aggregate supply curve that implies an inflexible price level. | 6 | |
6423769683 | Short run aggregate supply curve | Shows positive relationship between price level and RGDP - The higher the price, the more production of a good | 7 | |
6423769684 | Long run aggregate supply curve | The level of real GDP is determined by the number of workers, the capital stock-including factories, office buildings, and machinery and equipment-and the available technology. Changes in price level don't affect this aggregate supply curve, making it vertical | 8 | |
6423769685 | Determinates of aggregate supply | Factors that shifts the aggregate supply curve left or right- includes input prices, productivity, and legal-institutional environment | 9 | |
6423769686 | Productivity | A measure of the amount of output based on the amount of inputs used | 10 | |
6423769687 | Equilibrium price level | The price level that equates aggregate supply and aggregate demand | 11 | |
6423769688 | Equilibrium real output | The gross domestic product at which the total quantity of final goods and services purchased (aggregate expenditures) is equal to the total quantity of final goods and services produced (the real domestic output); the real domestic output at which the aggregate demand curve intersects the aggregate supply curve | 12 | |
6423769689 | Menu costs | The costs of changing prices | 13 | |
6423769690 | Efficiency wages | Wages that elicit maximum work effort and thus minimize labor costs per unit of output | 14 | |
6423769691 | AD-AS model (aggregate demand- aggregate supply model) | 15 |
AP ECON - Chapter 30 Flashcards
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