COMPREHENSIVE REVIEW OF AP MACRO TERMS
Terms : Hide Images
| 6019501332 | demand-pull inflation | inflation caused by AD shift to the right |  | 0 |
| 6019501333 | cost-push inflation | inflation caused by rising production costs; AS shift left |  | 1 |
| 6019501334 | real income | income adjusted for inflation | 2 | |
| 6019501335 | Nominal rate - inflation rate | Real Interest Rate | 3 | |
| 6019501336 | stagflation | Inflation and Unemployment at the same time. 1970s. | 4 | |
| 6019501337 | spending multiplier | 1/MPS | 5 | |
| 6019501338 | tax multiplier | -MPC/MPS | 6 | |
| 6019501339 | balanced budget multiplier | When Government Spending and Taxes go up by the same amount, GDP will increase by the amount of Government Spending | 7 | |
| 6019501340 | Relatively small changes in spending are magnified into larger changes in GDP | Significance of the spending multiplier | 8 | |
| 6019501341 | Consumption, Investment, Government Spending, and Net Exports | Determinants of aggregate demand. | 9 | |
| 6019501342 | Taxes, Imports, Savings | Leakages from the circular flow of the economy | 10 | |
| 6019501343 | 1. Real balances (wealth) effect 2. Interest rate effect 3. foreign purchases effect | Reasons for the downward sloping aggregate demand curve. | 11 | |
| 6019501344 | Aggregate Demand Curve | The inverse relationship between price level and real GDP | 12 | |
| 6019501345 | Aggregate Supply Curve | The direct relationship between price level and real GDP | 13 | |
| 6019501346 | Horizontal range of Aggregate Supply | The economy is likely in recession; sticky wages and prices | 14 | |
| 6019501347 | Vertical LRAS | At full employment output; all wages and prices are flexible | 15 | |
| 6019501348 | Determinants of Aggregate Supply | Input prices, productivity, and the legal/institutional environment | 16 | |
| 6019501349 | Congress and the President | These two government bodies carry out fiscal policy | 17 | |
| 6019501350 | expansionary fiscal policy | Government spending up and taxes down; used to fight recession | 18 | |
| 6019501351 | contractionary fiscal policy | Government spending down and taxes up; used to fight inflation | 19 | |
| 6019501352 | automatic stabilizers | Entitlement programs and our progressive tax system | 20 | |
| 6019501353 | crowding out effect | Refers to higher interest rates caused by heavy government borrowing that reduces investment spending | 21 | |
| 6019522629 | investment-demand curve | Inverse relationship between real interest rate and quantity of investment money demanded |  | 22 |
| 6019535854 | consumption schedule | shows the relation between consumption expenditures and income for a household; MPC; slope of C on Keynesian Cross |  | 23 |
| 6019544551 | saving schedule | shows the relation between saving and income for a household |  | 24 |
| 6019552761 | inflationary gap |  | 25 | |
| 6019554843 | recessionary gap |  | 26 | |
| 6019565815 | Long Run Macro Equilibrium |  | 27 |
