Aggregate Demand
What is aggregate demand?
The total demand for all of the final goods and services in a country at all given price levels (GDP).
What shape is the Long Run Aggregate Supply curve?
Perfectly Vertical
What is the formula for the Government Spending multiplier?
What is 1/MPS?
What is "Expansionary Policy"?
Anything that increases the GDP or AD
Who plays the role of Bruce Wayne in "The Batman" (2022)?
Robert Pattinson
What are the two ways the government can increase Aggregate Demand?
Increase spending or decrease taxes.
What is one way to shift the AS curve to the right?
Find natural resources, increase production efficiency, cheaper/more workers
What is the government spending multiplier when MPC = 0.8?
What is 5?
What is an Automatic Policy?
Anything that automatically happens that impacts GDP.
(Tax Rates, Welfare, etc)
What is the capital of Ukraine?
Kyiv
What are the components of Aggregate Demand?
Consumption, Investment, Government Spending, Net Exports
What is one way to shift the AS curve to the left?
Lose natural resources, decrease production efficiency, fewer or more expensive workers
What is the MPS if the investment multiplier is 4?
MPS = 0.25
What is Contractionary Policy
Anything that decreases the GDP or AD
Which actor/producer/musician has had his autobiography on the NYT Best Seller List for 15 weeks?
Will Smith
What are the two ways the government can decrease Aggregate Demand?
Decrease spending or increase taxes.
Why is the LRAS curve perfectly vertical?
The economy is at full employment and using all resources available.
What is the formula for the Tax Multiplier?
-MPC/MPS
What is a Discretionary Policy
When the government has to act or make a law to impact the economy.
(Gun Laws, new taxes, etc)
What was the most watched movie on Netflix this past weekend (February 27-28)?
Tyler Perry's A Madea Homecoming (2022)
Why the Aggregate Demand curve is downward sloping?
The higher the price level, the lower the public's purchasing power
U.S. price level goes up, net exports decrease.
Determine which direction the AS moves.
"Birth rates dramatically increase from 2005-2015"
Shift to the right.
If the government increases taxes by $100 billion and increases spending by $100 billion, and MPC = .4, what is the overall effect?
Increase in GDP of $100 billion.
What is an example of an automatic expansionary policy in our country?
Answers may vary.
(Welfare, lower tax rate)
What was unique about the dagger found in King Tut's tomb?