Aggregate Demand
What curve shows total spending in the economy?
What is aggregate demand?
What does SRAS stand for?
What is short-run aggregate supply?
Where do the aggregate demand and the aggregate supply intersect?
What is equilibrium?
What type of fiscal policy is used during a recession?
What is expansionary fiscal policy?
In which period are wages sticky?
What is the short run?
What are the four components of aggregate demand?
What are consumption, investment, government spending, and net exports?
Why is the SRAS curve upward sloping?
What are wages sticky in the short run?
Real GDP below potential GDP is called what type of gap?
What is a recessionary gap?
Which is more powerful: a tax cut or a government spending increase?
What is a government spending increase?
What curve shows full employment output?
What is LRAS?
If interest rates fall, what happens to aggregate demand?
What is the aggregate demand shift to the right?
Rising oil prices cause SRAS to shift in which direction?
What is to the left?
When the economy is producing at potential GDP, what type of gap exists?
What is no gap?
If MPC = 0.8, what is the spending multiplier?
What is 5?
In the long run, wages are this.
What is flexible?
Higher taxes will cause the aggregate demand to move in which direction?
What is to the left?
Better technology causes which curve(s) to shift right?
What are SRAS and LRAS?
During a recessionary gap, wages will eventually do what?
What is fall?
Expansionary fiscal policy shifts the aggregate demand in which direction?
What is to the right?
In the long run, the economy returns to what level of GDP?
What is potential GDP?
The government increases spending. What happens to the aggregate demand and real GDP in the short run?
What is the aggregate demand shift to the right, and the real GDP increase?
Why does LRAS not change when the price level changes?
What is the long-run output that depends on resources and technology, not prices?
Falling wages cause which curve to shift right?
What is SRAS?
If the multiplier is 4, a $25 billion spending increase changes GDP by how much?
What is $100 billion?
What causes long-run economic growth?
What is improved technology, resources, or productivity?