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4 Cards in this Set
- Front
- Back
The supply of real GDP is a function of:
#the total expenditures of consumers, investors, and government #the sum of wages, salaries, corporate profits, rents, and interest #the quantities of labor, capital, and the state of tech #only the state of tech |
The supply of real GDP is a function of: the quantities of labor, capital, and the state of tech
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In the macroeconomics short run:
#actual real GDP always equals potential GDP #actual GDP may be less than or more than potential GDP #the unemployment rate is zero #by def. the economy is always moving away from full employment |
In the macroeconomics short run: actual real GDP may be less than or more than potential GDP
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Moving along the short-run aggregate supply curve:
#real GDP equals nominal GDP #the real wage rate is constant #the money wage rate, the prices of other resources, and potential GDP remain constant #real GDP equals potential GDP |
Moving along the short-run aggregate supply curve: the money wage rate, the prices of other resources, and potential GDP remain constant
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An individual holds $10,000 in a checking account and the price level rises significantly, hence:
#the individuals real wealth decreases but real national wealth increases #the individuals wealth increases #there is no change in the individuals real wealth #the individuals real wealth and consumption expenditure decrease |
An individual holds $10,000 in a checking account and the price level rises significantly, hence: the individuals real wealth and consumption expenditure decrease
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