Term
| What decreases aggregate demand? |
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Definition
| a decrease in government expenditures |
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Term
| When the government conducts contractionary fiscal policy we should see |
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Definition
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Term
| The demand for money curve shows the relationship between the quantity of money and |
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Definition
| the nominal interest rate |
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Term
If the price of the bond _____ , the interest rate_____.
(rise or fall) |
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Definition
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Term
| In a booming economy ___ will increase ___ to keep ____ low. |
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Definition
| immigration, aggregate supply, inflation |
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Term
| The relationship between the nominal interst rate, the real interest rate, and the inflation rate is that |
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Definition
| the real interest rate is equal to the real interest rate plus the inflation rate |
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Term
| An increase in only inflation means aggregate demand is |
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Definition
| on the classical part of aggregate supply |
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Term
| The circular flow diagram should include _____ to get a more complete picture |
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Definition
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Term
| Classical long run aggregate supply is ___ because ___ |
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Definition
| vertical ecause real GDP never changes |
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Term
| Economists use the term wealth to reger to |
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Definition
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Term
If the price level increases |
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Definition
the demand for money increases
(not quantity demanded because thats all things besides price changing) |
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Term
| If the feds policies aim to increase aggregate demand, the fed must fear |
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Definition
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Term
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Definition
| remove taxes from income and capital taxation, and onto the use of fossil fuels and resources |
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Term
| In the model that combines classical and keynesian method, if there is an increase in aggregate supply Real GDP will _____while inflation _____ . |
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Definition
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Term
| What main factor influences saving and change in the supply of loanable funds? |
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Definition
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Term
| What are sources of government revenue? |
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Definition
Corporate Payroll
social security
sales
personal income
(all of the above) |
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