(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
|
|
|
| aggregate demand | the relationship between the general price level and total spending in the economy (See page(s) 247) |
| |
| |
| |
| aggregate demand curve | the relationship between the general price level and total spending in the economy expressed on a graph (See page(s) 247) |
| |
| |
| |
| aggregate demand factors | variables that cause changes in total expenditures at all price levels (See page(s) 248) |
| |
| |
| |
| aggregate demand schedule | the relationship between the general price level and total spending in the economy expressed in a table (See page(s) 247) |
| |
| |
| |
| aggregate supply | the relationship between the general price level and real output produced in the economy (See page(s) 254) |
| |
| |
| |
| aggregate supply curve | the relationship between the general price level and real output expressed on a graph (See page(s) 254) |
| |
| |
| |
| aggregate supply factors | variables that change total output at all price levels (See page(s) 255) |
| |
| |
| |
| aggregate supply schedule | the relationship between the general price level and real output expressed in a table (See page(s) 254) |
| |
| |
| |
| business cycle | the cycle of expansions and contractions in the economy (See page(s) 266) |
| |
| |
| |
| contraction | a sustained fall in real output of an economy (See page(s) 266) |
| |
| |
| |
| decrease in aggregate demand | a decrease in total expenditures at all price levels (See page(s) 248) |
| |
| |
| |
| depression | a particularly long and harsh period of reduced real output (See page(s) 267) |
| |
| |
| |
| exchange rate | the value of one nation's currency in terms of another currency (See page(s) 252) |
| |
| |
| |
| expansion | a sustained rise in real output of an economy (See page(s) 266) |
| |
| |
| |
| foreign trade effect | with changes in the price level, expenditures on imports change in the same direction, while expenditures on exports change in the opposite direction (See page(s) 248) |
| |
| |
| |
| increase in aggregate demand | an increase in total expenditures at all price levels (See page(s) 248) |
| |
| |
| |
| inflationary gap | the amount by which equilibrium output exceeds potential output (See page(s) 262) |
| |
| |
| |
| injections | additions to an eco-nomy's income-spending stream (See page(s) 260) |
| |
| |
| |
| injections-withdrawals approach | an approach to deriving equilibrium GDP that focuses on total injections and total withdrawals (See page(s) 274) |
| |
| |
| |
| investment demand | the relationship between interest rates and investment (See page(s) 251) |
| |
| |
| |
| investment demand curve | the relationship between interest rates and investment expressed on a graph (See page(s) 251) |
| |
| |
| |
| investment demand schedule | the relationship between interest rates and investment expressed in a table (See page(s) 251) |
| |
| |
| |
| long-run decrease in aggregate supply | a decrease in total and potential output at all price levels (See page(s) 255) |
| |
| |
| |
| long-run increase in aggregate supply | an increase in total and potential output at all price levels (See page(s) 255) |
| |
| |
| |
| marginal propensity to save (MPS) | the effect on saving of a change in income (See page(s) 273) |
| |
| |
| |
| negative unplanned investment | an unintended decrease in inventories; a shortage (See page(s) 260) |
| |
| |
| |
| peak | the point in the business cycle at which real output is at its highest (See page(s) 267) |
| |
| |
| |
| positive unplanned investment | an unintended increase in inventories; a surplus (See page(s) 260) |
| |
| |
| |
| real expenditures | total spending in an economy, adjusted for changes in the general price level (See page(s) 247) |
| |
| |
| |
| real rate of return | constant-dollar extra profit provided by a project each year stated as a percentage of the project's initial cost (See page(s) 250) |
| |
| |
| |
| recession | a decline in real output that lasts for six months or more (See page(s) 267) |
| |
| |
| |
| recessionary gap | the amount by which equilibrium output falls short of potential output (See page(s) 262) |
| |
| |
| |
| short-run decrease in aggregate supply | a decrease in total output at all price levels, with no change in potential output (See page(s) 255) |
| |
| |
| |
| short-run increase in aggregate supply | an increase in total output at all price levels, with no change in potential output (See page(s) 255) |
| |
| |
| |
| spending-output approach | an approach to deriving equilibrium GDP that focuses on total expenditures and total output (See page(s) 274) |
| |
| |
| |
| trough | the point in the business cycle at which real output is at its lowest (See page(s) 267) |
| |
| |
| |
| wealth effect | with changes in the price level, the real value of households' financial assets changes, causing households to adjust their spending (See page(s) 248) |
| |
| |
| |
| withdrawals | deductions from an economy's income-spending stream (See page(s) 260) |