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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.
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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.
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Mr. Weiss Vocabulary Review – Test 4 – Sections 3 & 4 1. expansionary fiscal policy; 2. fiscal policy; 3. GDP Deflator; 4. Inflationary gap 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.
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Mr. Weiss Vocabulary Review – Test 4 – Sections 3 & 4 1. expansionary fiscal policy; 2. fiscal policy; 3. GDP Deflator; 4. Inflationary gap 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.
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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
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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
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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;
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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;
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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.
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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.
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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;
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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;
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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. _____ 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.
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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. __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.
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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.
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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.
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Mr. Weiss Vocabulary Review – Test 4 – Sections 3 & 4
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