McConnell Brue book 16th edition (all terms are from glossary)
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| the macroeconomic model that uses aggregate demand and aggregate supply to determine and explain the price level and the real domestic output | ||
| a schedule or curve that shows the total quantity of goods and services demanded (purchased) at different price levels. | ||
| the tendency for increases in the price level to lower the real value (purchasing power) of financial assets with fixed money value and, as a result, to reduce total spending and real output and decreases in price level. | ||
| the tendency for increases in the price level to lower the real value (or purchasing power) of financial assets with fixed money value and, as a result, to reduce total spending and real output, and conversely for decreases in the price level. | ||
| the inverse relationship between the net exports of an economy and its price level relative to foreign price levels. | ||
| factors such as consumption spending, investment, government spending, and net exports. | ||
| a schedule or curve showing the total quantity of goods and services supplied (produced) at different price levels. | ||
| the aggregate supply curve associated with a time period in which input prices (especially nominal wages) are fully responsive to changes in price level. | ||
| an aggregate supply curve relevant to a time period in which input prices (particularly nominal wages) do not change in response to changes in price level. | ||
| factors such as input prices, productivity, and the legal-institutional environment | ||
| a measure of average output or real output per unit of input. For example, the productivity of labor is determined by dividing real output of hours of work. | ||
| the price level at which the aggregate demand curve intersects the aggregate supply curve. | ||
| the GDP at which the total quantity of final good 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. | ||
| a wage that minimizes wage costs per unit of output by encouraging greater effort or reducing turnover. | ||
| the cost of printing new menus when a restaurant changes its prices. | ||
| changes in government spending and tax collections designed to achieve a full-employment and non-inflationary domestic output; also called discretionary fiscal policy | ||
| federal legislation that committed the Federal government to the maintenance of economic stability (a high level of employment, a stable price level, and economic growth); established the Council of Economic Advisers and the Joint Economic Committee; and required an annual economic report by the president to Congress. | ||
| a group of three persons that advises and assists the president of the United States on economic matters (including the preparation of the annual Economic Report of the President) | ||
| an increase in government purchases of goods and services, a decrease in net taxes, or some combination of the two for the purpose of increasing aggregate demand and expanding real output. | ||
| the amount by which the expenditures of the Federal government exceed its revenues in any year. | ||
| a decrease in government purchases for goods and services, an increase in net taxes, or some combination of the two, for the purpose of decreasing aggregate demand and thus controlling inflation. | ||
| the amount by which the revenues of the Federal government exceed its expenditures in any year. | ||
| a mechanism that increases government's budget deficit (or reduces its surplus) during a recession and increases government's budget surplus ( or reduces its deficit) during inflation without any action by policy makers. The tax system is one such mechanism. | ||
| a tax whose average tax rate increases as the taxpayer's income increases and decreases as the taxpayer's income decreases. | ||
| a tax whose average tax rate remains constant as the taxpayer's income increases or decreases. | ||
| a tax whose average tax rate decreases as the taxpayer's income increases and increases as the taxpayer's income decreases. | ||
| a comparison of the government expenditures and tax collections that would occur if the economy operated at full employment throughout the year. | ||
| a Federal budget deficit that is caused by a recession and the consequent decline in tax revenues. | ||
| the alleged tendency of Congress to destabilize the economy by reducing taxes and increasing government expenditures before elections and to raise taxes and lower expenditures after election. | ||
| a rise in interest rates and a resulting decrease in planned investment caused by the Federal government's increased borrowing in the money market. | ||
| the ideas that the impact of a change in monetary policy or fiscal policy will be strengthened or weakened by the consequent change in net exports. the change in net exports occurs because of changes in real interest rates, which affect exchange rates. |
