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Macroeconomics Formula Sheet

Subject: 
Economics [1]
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macroeconomics [2]
economics [3]
IS/LM model [4]
Crowding out [5]
Expansionary monetary policy [6]
Fiscal policy [7]
Contractionary monetary policy [8]
Gross domestic product [9]
Fiscal multiplier [10]
monetary policy [11]
Multiplier [12]
Supply-side economics [13]
Business [14]

Inflationary Gap: At Capacity, The difference between Planned Expenditure and Agg. Output (rise in price not met with rise in Y) Causes of Inflation: Demand Pull ? initiated by MD? Cost Push/Supply-Side ? caused by ?Costs and ?Supply Stagflation- Causes both Y? P? - BAD NEWS Expectations: Of price increases cause companies to collectively pre-empt by increasing prices causing the real price to rise Monetary/Fiscal: Expansionary monetary/Fiscal policy at capacity will also push up AD causing inflation Lags: Recognition, Implementation -much longer for Fiscal Policies, Response - time it takes for the economy to adjust after implementation- much longer for Monetary Policies)

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