How can we help?

You can also find more resources in our Help Center.

30 terms

Econ Practice test

STUDY
PLAY
fiscal policy
govt uses taxation and spending actions to stimulate economy
countercyclical
fed govt cuts taxes and increases spending to stimulate economy
Council of Economic Advisors
direct responsibility for providing analysis, advice and assistance to the US pres on economic matters
contractionary fiscal policies
increased taxation and decreased govt spending
automatic stabilizer
as real GDP falls, income tax revenues, decrease and transfer payments increase
Federal Budget Deficit
fed govt spending exceeds tax revenues
public debt
sum of all previous budget deficits minus any budget surpluses on the Fed govt
potential problem of public debt
lead to added taxes that reduce economic incentives
aggregate demand curve
inverse relationship between the price level and real GDP purchased
increase in the price level
a decline in the quantity of real output demanded along the aggregate demand curve is a result of an
decrease in aggregate demand
an increase in taxes on consumers will most likely cause a
increase aggregate demand
an expected rise in the rate of inflation for consumer goods
the tax rates on household income
an increase in aggregate demand is most likely to be caused by a decrease in:
an increase in personal income tax rates
which set of events would most likely decrease aggregate demand?
decrease in aggregate demand
a decrease in govt spending will cause a
aggregate demand decreases
if the dollar appreciates in value relative to foreign currencies
price level
movement along the aggregate demand curve would be caused by a change in:
AD curve shift left
an appreciation in the value of the US dollar
AS curve
level of real domestic output which will be produced at each possible price level
short run AS curve
direct relationship between the price level and real GDP produced
an aggregate supply determinant
a change in aggregate supply would be caused by a change in:
supply curve rightward
a fall in the price of capital goods will shift the aggregate
prices of imported resources
most likely shift aggregate supply curve
raising taxes on businesses
increase per-unit production costs and thus decrease aggregate supply
increase aggregate supply
decrease in prices of resources would most likely,
long run
period in which nominal wages change as the price level changes
short run
period in which nominal wages do not respond as the price level changes
LR AS curve
graph is vertical
SR AS curve
graph is upsloping
equilibrium level of real domestic output and prices
the intersection of the aggregate demand and aggregate supply curves determines the: