Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
9 Cards in this Set
- Front
- Back
Aggregate demand (AD) curve |
A curve that shows the relationship between the price level and the quantity of real GDP demanded by households, firms, and the government. |
|
Aggregate demand and aggregate supply model |
A model that explains short run fluctuations in real GDP and the price level |
|
Fiscal Policy |
Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. |
|
Long run aggregate supply LRAS curve |
A curve that shows the relationship in the long run between the price level and the quantity of real GDP supplied. |
|
Menu Costs |
The costs to firms of changing prices. |
|
Monetary policy
|
the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objectives.
|
|
Short-Run aggregate supply SRAS curve
|
A curve that shows the relationship in the short run between the price level and the quantity of real GDP supplied by firms.
|
|
Stagflation
|
A combination of inflation and recession, usually resulting from a supply shock.
|
|
Supply Shock
|
An unexpected event that causes the short-run aggregate supply is greater than the quantity demanded.
|