Transcript Sections 3 & 4

Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. aggregate demand curve; 2. contractionary fiscal policy;
3. cyclical unemployment; 4. disposable income;
_____ unemployment resulting from the business cycle;
_____ income plus government transfers minus taxes; the total
amount of household income available to spend on consumption and
saving
_____ fiscal policy that reduces aggregate demand by decreasing
government purchases, increasing taxes, or decreasing transfers.
_____ shows the relationship between the aggregate price level and the
quantity of aggregate output demanded by households, businesses,
the government, and the rest of the world.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. aggregate demand curve; 2. contractionary fiscal policy;
3. cyclical unemployment; 4. disposable income;
__3__ unemployment resulting from the business cycle;
__4__ income plus government transfers minus taxes; the total
amount of household income available to spend on consumption and
saving
__2__ fiscal policy that reduces aggregate demand by decreasing
government purchases, increasing taxes, or decreasing transfers.
__1__ shows the relationship between the aggregate price level and the
quantity of aggregate output demanded by households, businesses,
the government, and the rest of the world.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. expansionary fiscal policy; 2. fiscal policy; 3. GDP
Deflator; 4. Inflationary gap;
_____ the use of taxes, government transfers, or government
purchases of goods and services to stabilize the economy.
_____ fiscal policy that increases aggregate demand by increasing
government purchases, decreasing taxes, or increasing transfers.
_____ exists when aggregate output is above potential output.
_____ a price measure for a given year that is equal to 100 times
the ratio of nominal GDP to real GDP in that year.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. expansionary fiscal policy; 2. fiscal policy; 3. GDP
Deflator; 4. Inflationary gap;
__2__ the use of taxes, government transfers, or government
purchases of goods and services to stabilize the economy.
__1__ fiscal policy that increases aggregate demand by increasing
government purchases, decreasing taxes, or increasing transfers.
__4__ exists when aggregate output is above potential output.
__3__ a price measure for a given year that is equal to 100 times
the ratio of nominal GDP to real GDP in that year.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. inflation rate; 2. investment spending; 3. monetary
policy; 4. stagflation;
_____ the annual percent change in a price index—typically the
consumer price index.
_____ spending on productive physical capital, such as
machinery and construction of structures, and on changes to
inventories.
_____ the combination of inflation and falling aggregate output
_____ the central bank’s use of changes in the quantity of
money or the interest rate to stabilize the economy
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. inflation rate; 2. investment spending; 3. monetary
policy; 4. stagflation;
__1__ the annual percent change in a price index—typically the
consumer price index.
__2__ spending on productive physical capital, such as
machinery and construction of structures, and on changes to
inventories.
__4__ the combination of inflation and falling aggregate output
__3__ the central bank’s use of changes in the quantity of
money or the interest rate to stabilize the economy
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. labor force; 2. labor force participation rate; 3. marginal
propensity to consume; 4. marginal propensity to save;
_____ the increase in household savings when disposable
income rises by $1.
_____ the increase in consumer spending when income rises by
$1.
_____ the percentage of the population age 16 or older that is in
the labor force.
_____ the number of people who are either actively employed
for pay or unemployed and actively looking for work;
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. labor force; 2. labor force participation rate; 3. marginal
propensity to consume; 4. marginal propensity to save;
__4__ the increase in household savings when disposable
income rises by $1.
__3__ the increase in consumer spending when income rises by
$1.
__2__ the percentage of the population age 16 or older that is in
the labor force.
__1__ the number of people who are either actively employed
for pay or unemployed and actively looking for work;
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. multiplier; 2. natural rate of unemployment; 3. nominal
GDP; 4. planned investment spending;
_____ the unemployment rate that arises from the effects of frictional
plus structural unemployment.
_____ the value of all final goods and services produced in the
economy during a given year, calculated using the prices current in
the year in which the output is produced.
_____ the investment spending that firms intend to undertake during a
given period.
_____ the ratio of total change in real GDP caused by an autonomous
change in aggregate spending to the size of that autonomous change.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. multiplier; 2. natural rate of unemployment; 3. nominal
GDP; 4. planned investment spending;
__2__ the unemployment rate that arises from the effects of frictional
plus structural unemployment.
__3__ the value of all final goods and services produced in the
economy during a given year, calculated using the prices current in
the year in which the output is produced.
__4__ the investment spending that firms intend to undertake during a
given period.
__1__ the ratio of total change in real GDP caused by an autonomous
change in aggregate spending to the size of that autonomous change.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. price index; 2. real GDP; 3. recessionary gap; 4.
unemployment rate;
_____ exists when aggregate output is below potential output.
_____ the percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment +
employment).
_____ the total value of all final goods and services produced in the
economy during a given year, calculated using the prices of a selected
base year.
_____ a measure of the cost of purchasing a given market basket in a
given year, where that cost is normalized so that it is equal to 100 in the
selected base year;
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. price index; 2. real GDP; 3. recessionary gap; 4.
unemployment rate;
__3__ exists when aggregate output is below potential output.
__4__ the percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment +
employment).
__2__ the total value of all final goods and services produced in the
economy during a given year, calculated using the prices of a selected
base year.
__1__ a measure of the cost of purchasing a given market basket in a
given year, where that cost is normalized so that it is equal to 100 in the
selected base year;
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. Government transfers; 2. intermediate goods and services; 3. net
exports; 4. underemployed;
_____people
who work part time because they cannot find full-time
jobs.
_____payments by the government to individuals for which no
good or service is provided in return.
_____goods and services, bought from one firm by another firm,
that are inputs for production of final goods and services.
_____the difference between the value of exports and the value of
imports.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. Government transfers; 2. intermediate goods and services; 3. net
exports; 4. underemployed;
__4__people
who work part time because they cannot find full-time
jobs.
__1__payments by the government to individuals for which no
good or service is provided in return.
__2__goods and services, bought from one firm by another firm,
that are inputs for production of final goods and services.
__3__the difference between the value of exports and the value of
imports.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. Sticky wages; 2. discretionary fiscal policy; 3. long-run aggregate
supply curve; 4. automatic stabilizers;
_____a graphical representation of the relationship between the
aggregate price level and the quantity of aggregate output supplied if all
prices, including nominal wages, were fully flexible.
_____fiscal policy that is the direct result of deliberate actions by policy
makers rather than rules.
_____government spending and taxation rules that cause fiscal policy to
be necessarily expansionary when the economy contracts and
necessarily contractionary when the economy expands.
_____ nominal wages that are slow to fall even in the face of high
unemployment and slow to rise even in the face of labor shortages.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4
1. Sticky wages; 2. discretionary fiscal policy; 3. long-run aggregate
supply curve; 4. automatic stabilizers;
__3__a graphical representation of the relationship between the
aggregate price level and the quantity of aggregate output supplied if all
prices, including nominal wages, were fully flexible.
__2__fiscal policy that is the direct result of deliberate actions by policy
makers rather than rules.
__4__government spending and taxation rules that cause fiscal policy to
be necessarily expansionary when the economy contracts and
necessarily contractionary when the economy expands.
__1__ nominal wages that are slow to fall even in the face of high
unemployment and slow to rise even in the face of labor shortages.
Mr.
Weiss
Vocabulary Review – Test 4 – Sections 3 & 4