Growth Happens!
The Solow II equation for real GDP
What is Y = Af(land, labor, capital)?
The third Rotunda principle
What is the three causes of economic growth are resources, technology, and institutions?
This specific price/cost is often downwardly sticky.
What are wages or input prices?
The X axis of the Solow Growth Model graph
What is capital?
The man who created the first two iterations of the economic growth model
Who is Robert Solow?
The difference between Solow I and Solow II
What is technology?
Modern Growth Theory (MGT) adds this to Solow
What are Institutions?
An economic term characterized as "a decline in the rate of inflation."
What is disinflation?
This approach to modeling the aggregate economy combines the beliefs of two others.
What is modern synthesis?
This group of economists does not believe in an SRAS curve
Who are the classical economists?
Rich countries get richer and poor countries stay poor. These are reasons why
What is Solow I is insufficient?
The description of taxes which aren't necessarily just, equal, or perfect, but are...
What is efficient?
An economic term characterized as "a decline in the actual price level of goods and services."
What is deflation?
Supply shocks and changes in sticky input prices.
What are the shift factors of the SRAS curve?
Finish Jackson's quote: "if prices don’t adjust,…"
What is "output must"?
The implication of the Solow model relating to capital investment
What is the steady state?
The opposite of exogenous
What is endogenous?
The two reasons some prices are sticky
What are money illusion and long term contracts?
The focus in the ADAS model of the Keynesian economists.
What is AD?
This economist said, "In the long run, we’re all dead," highlighting his focus on the SRAS.
Who is John Maynard Keynes?
The implication of the Solow model which comes from the existence of a steady state
What is convergence?
The institution which incentivizes economic growth and the Fed often has influence over
What is a stable money supply?
The three causes of the Great Depression.
What are a decrease in real wealth, a decrease in expected future income, and government policy blunders?
The two shift factors of the NX component of the AD curve.
What are foreign income and the value of the dollar?
Keynes had a pet name for consumer expectations and confidence.
What are animal spirits?