Just study the -CENSORED- cards.
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| 363085768 | Short-run aggregate supply | The relationship between the quantity of real GDP supplied and the price level when the money wage rate, the prices of other resources, and potential GDP remain constant. | |
| 363085769 | Long-run aggregate supply | inputs prices (ex: wages) adjust with output prices and vice versa, this eliminates the incentive to produce more or less output at higher or lower price levels since purchasing power of per-unit profits has not changed | |
| 363085770 | Short-run aggregate demand | increase in investment shifts AD to the right, hgher price level results, workers want higher wages, , firms will charge higher prices, AS shift back to the left | |
| 363085771 | Long-run aggregate demand | In long-run, shift in aggregate demand affect the overall price level but not output. In short-run, shifts in aggregate demand cause fluctuations in price leave and economy's output of goods | |
| 363085772 | Demand-pull inflation | increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand | |
| 363085773 | Cost-push inflation | When prices rise due to an increase in the cost of production. | |
| 363085774 | Phillips Curve | A graph showing the relationship between inflation and unemployment . The theory states that unemployment can be reduced in the short run by increasing price level (inflation) at a faster rate. Conversely, inflation can be lowered at the cost of possibly increased unemployment and slower economic growth. Named after A. W. Phillips. | |
| 363085775 | Aggregate Supply Shocks | are sudden large increases in resource costs that jolt an economy's short-run aggregate supply curve leftward. | |
| 363085776 | Long-run vertical Philips Curve | Curve that shows in the long run, there is NO tradeoff between inflation and unemployment. Any rate of inflation is consistent with the NRU - Increase in AD beyond NRU → temporarily boost profits, output, employment → nominal wages increase → profits fall → back to original level of unemployment | |
| 363085777 | Disinflation | a reduction of prices intended to improve the balance of payments. | |
| 363085778 | Supply-side economics | An economics philosophy suggesting tax cuts can help an economy by raising supply. -CENSORED- this -CENSORED-; doesn't work. | |
| 363085779 | Laffer Curve | A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues. |
