question
Multiplier
answer
Real GDP divided by initial change in spending
question
Supply Shock
answer
An event that shifts the SRAS curve
question
Fiscal Policy
answer
The use of government purchases of goods and services, government transfers, or tax policy to stabilize the economy
question
Potential Output
answer
The level of real GDP the economy would produce if all prices, including nominal wages, were fully flexible
question
Cost-push inflation
answer
Inflation caused by a significant increase in the price of an input with economy-wide importance
question
Wealth effect
answer
The change in consumer spending caused by the altered purhcasing power of consumers' assets
question
Nominal Wage
answer
The dollar amount of the wage paid
question
Recessionary Gap
answer
When aggregate output is below potential output
question
Real GDP
answer
market value of goods and services produced adjusted for inflation
question
Marginal Propensity to Consume
answer
the increase in consumer spending when disposable income rises by $1
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
