Term
| Aggregate Demand and Aggregate Supply Model |
|
Definition
| a model that explains short-run fluctuations in real GDP and the price level |
|
|
Term
|
Definition
| a curve that shows the relationship between the price level and the quantity of real GDP demanded by households, firms, and the government |
|
|
Term
|
Definition
| the actions the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomics policy objectives |
|
|
Term
|
Definition
| changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives |
|
|
Term
| Long-Run Aggregate Supply Curve |
|
Definition
| a curve that shows the relationship in the long run between the price level and the quantity of real GDP supplied |
|
|
Term
| Short-Run Aggregate Supply Curve |
|
Definition
| a curve that shows the relationship in the short run between the price level and the quantity of real GDP supplied by firms |
|
|
Term
|
Definition
| the costs to firms of changing prices |
|
|
Term
|
Definition
| an unexpected event that causes the short-run aggregate supply curve to shift |
|
|
Term
|
Definition
| a combination of inflation and recession, usually resulting from a supply shock |
|
|
