Fiscal Policy/AD&AS

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Author:
Kencollins08
ID:
133984
Filename:
Fiscal Policy/AD&AS
Updated:
2012-02-09 05:09:04
Tags:
Econ2
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Fiscal Policy/AD&AS
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  1. Marginal Propensity to Consume (MPC)
    • the change in consumption resulting from a given change in real disposable income
  2. Marginal Propensity to Save (MPS)
    • the change in saving resulting from a given change in real disposable income
  3. Aggregate Expenditures
    represents total spending in an economy at a given level of real disposable income
  4. Says Law
    the theory that supply creates its own demand
  5. Autonomous Consumption
    consumption that is independent of the level of disposable income
  6. Spending Multiplier
  7. Aggregate-expenditure output model
    determines the level of real GDP by the intersection of the aggregate expenditures and aggregate output curves
  8. Recessionary GDP gap
    the amount by which aggregate expenditures fall short of the amount required to achieve full-employment equilibium
  9. Inflationary GDP gap
    the amount by which aggregate expenditures exeed the amount required to achieve full-employment equilibrium
  10. Stagflation
    is an economy experiencing inflation and unemployment simultaniously
  11. Aggregate Demand Curve
    shows the level of real GDP purchased in the economy at different price levels during a period of time
  12. Aggregate Supply Curve
    shows the level of real GDP that an economy produces at different possible price levels
  13. Fiscal Policy
    the federal governments decisions about the amount of money it spends and collects in taxes to achieve fell employment and non-inflationary economy
  14. Budget Surplus
    when governments revenues exceed government expenditures
  15. Budget Deficit
    when governments expenditures exeed government revenues

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