price floor
AD curve shifts to the left
expansionary fiscal policy
economic growth
consumer spending, investment spending, government purchases, net exports
PL in yr 2- PL in yr 1 / PL yr 1 x 100
efficient
scarcity
opportunity cost
Short-run macroeconomic equilibrium
higher price, less demand; lower price, higher demand
AD shifts to the right
Real GDP
the study of scarcity and choice
expansion
Complete crowding out
1
nominal wages are fully flexible
nominal wages that are slow to change (SRAS)
structural deficit + cyclical deficit
AD curve shifts to the left
total value of all goods and services produced in the economy, using base year prices
tax rates increase, when income increases
government expenditures are greater than tax revenues for a single year
people who aren't employed but actively looking for a job.
What is economics?
What is real GDP?
technology is a source of?
what are the components of GDP?
a 1:1 ratio, occurs in what type of crowding out?
when in a recessionary gap, what do economists propose?
what type of shift does an increase in purchasing power cause?
The intersection of the SRAS curve and the AD curve is known as __?
What is the main problem in economics?
What is the law of demand?
any point located on the PPC is considered to be ____?
What are sticky wages?
Who would be considered unemployed?
what is the formula to calculate the inflation rate?
Minimum wage is an example of a __?
MPC+MPS will always equal ___?
What effect does a negative demand shock have on the AD-AS model?
What is the formula to calculate total budget deficit?
the value of what you give up when you make a particular choice
when does a budget deficit occur?
If the government reduces spending, what shift will happen?
what is the horizontal axis in the AD-AS curve?
the stage between a trough and a peak in the business cycle?
Why is the LRAS curve a vertical line?
what is a progressive income tax?
