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Aggregate Demand
Cause & Effect
Name the Graph/Line
Name the Term
Misc
100
Where AS intersects with AD is known as ___________
equilibrium
100
Aggregate demand shows a (inverse/direct) relationship on a graph.
inverse
100
The line which shows a direct relationship between price level and real GDP is the _________________
Aggregate Supply Curve
100
The period in which wages do not respond to price level changes is called ___________
Short run
100
The Federal Reserve Note is backed by gold. True or false?
False
200
A decrease in demand causing a decline in output and price level is called a ___________
Recession
200
Cost- Push inflation results in the phenomena shown by the righward shift in the Philip's Curve called __________
Stagflation
200
A graph with the axises Capital and Consumer Goods is most likely the ___________ Curve Graph
Production Possibilities
200
Aggregate supply is the relationship between real GDP and __________.
Price Level
200
How can a country operate beyond their production possibilities curve (in regards to an international market)?
Trade with a country where they have a mutual comparative advantage.
300
An expansionary fiscal policy may unintentionally shift the AD curve ________ through the crowding out effect.
Left (decrease)
300
A major supply shock in the United States was caused by which large oil organization in 1973?
OPEC
300
The graph featuring the trough, recovery and peak
Business Cycle Graph
300
Worker contracts often stipulate fixed wages for a certain period of time. This is partly the reason for _________
Rachet Effect, Price Inflexibility or Short Run
300
Transaction demand and asset demand combine to form which curve on the money market graph?
Demand for Money Curve
400
If the government attempts to correct a recession by increasing aggregate demands through fiscal policy, what will happen to the price level and output level, relative to the recession price and output level?
Increase
400
Using surplus to retire debt may negate the effects of a/n ______ Policy.
Contractionary Fiscal/ Monetary
400
A tax rate increase in Nova Scotia results in a decrease in revenue for the Nova Scotian government. This conundrum parallels the views of the ___________
Laffer Curve
400
As per the Phillips Curve, inflation causes a temporary decrease in unemployment. This time period is called the _________
Short Run
400
"In the long run, we are all dead" is a quote by who?
John Maynard Keynes
500
A congressman accidentally reveals that tax prices will rise 220% starting in 2014. In light of this tableau, what will happen to aggregate demand in December of 2013?
Increase
500
A recent baby boom causes a salient resurgence of spending on goods. In response to the changes in the economy, collectively, what will happen to the real wages of workers in the short run?
Decrease
500
A growing movement in the United States embodies the reduced consumption of materialistic goods. In the long run, __________ will shift on the graph in response to the lower price level, reversing the previously existing recession.
Aggregate Supply Curve
500
What is the namesake term of informally measuring the Purchasing Power Parity between different currencies using the product of a certain fast food franchise?
The Big Mac Index
500
When the price level rises, workers demand higher nominal wages. When the price level decreases, employers decrease their worker's wages to reduce the input costs. This is the impetus for the economic theory called the ________________________
Rational Expectations Theory (RET)