MACROECONOMICS FINAL EXAM.FINAL TEST 2026\2027.
Total income households have after paying taxes and receiving government transfers
disposable income
Market failure may occur because
individual actions have side effects that are not properly taken into account by the market
A graphical representation of the relationship between the total quantity of goods and
services demanded and the price level
aggregate demand curve
If banks were required to keep 100% of deposits in reserves, they could
make no loans
The point on a business cycle when real GDP stops falling and begins rising
business cycle trough
In the long run, changes in the money supply
affect only the price level but they do not change aggregate output
The double coincidence of wants problem can be solved by
money
An inflationary gap can be closed with
a decrease in government purchases
Monetary policy affects GDP and the price level by
changing aggregate demand
The short-run aggregate supply curve is positively sloped because
wages are sticky or don't readily adjust to changes in economic conditions in the short run
nominal GDP
that year's output times same year price
real GDP
base year price times that year's output
The money spent on domestically produced final goods and services
is the GDP, appears as income to someone, and appears in the circular flow model
, MACROECONOMICS FINAL EXAM.FINAL TEST 2026\2027.
Diminishing returns to physical capital means that as more and more physical capital
is combined with a fixed amount of human capital with a fixed technology, eventually
additions to aggregate output or real GDP declines
The most important factor affecting a household's consumer spending is
current disposable income
A contractionary fiscal policy is a policy that
reduces aggregate demand by decreasing government purchases
The CPI is used for calculating payments from the U.S. government to individuals. To
the extent it is biased upward, this index
raises government expenditures
Physical capital would include
the tools a worker has to work with
In the "paradox of thrift"
increased saving by individuals increases their chances of becoming unemployed
Long-run growth is the sustained upward trend in
aggregate output per person over several decades
When the value of a nation's imports exceeds the value of that nation's exports, the
nation is said to have
a trade deficit
Deflation
can cause decreases in output
Among the assets of a bank are
loans
The marginal propensity to save is
the fraction of an additional dollar of disposable income that is saved
The process of bringing down inflation that has been embedded into expectations is
called
disinflation
Technological improvements will
shift the production possibility frontier outward
Total income households have after paying taxes and receiving government transfers
disposable income
Market failure may occur because
individual actions have side effects that are not properly taken into account by the market
A graphical representation of the relationship between the total quantity of goods and
services demanded and the price level
aggregate demand curve
If banks were required to keep 100% of deposits in reserves, they could
make no loans
The point on a business cycle when real GDP stops falling and begins rising
business cycle trough
In the long run, changes in the money supply
affect only the price level but they do not change aggregate output
The double coincidence of wants problem can be solved by
money
An inflationary gap can be closed with
a decrease in government purchases
Monetary policy affects GDP and the price level by
changing aggregate demand
The short-run aggregate supply curve is positively sloped because
wages are sticky or don't readily adjust to changes in economic conditions in the short run
nominal GDP
that year's output times same year price
real GDP
base year price times that year's output
The money spent on domestically produced final goods and services
is the GDP, appears as income to someone, and appears in the circular flow model
, MACROECONOMICS FINAL EXAM.FINAL TEST 2026\2027.
Diminishing returns to physical capital means that as more and more physical capital
is combined with a fixed amount of human capital with a fixed technology, eventually
additions to aggregate output or real GDP declines
The most important factor affecting a household's consumer spending is
current disposable income
A contractionary fiscal policy is a policy that
reduces aggregate demand by decreasing government purchases
The CPI is used for calculating payments from the U.S. government to individuals. To
the extent it is biased upward, this index
raises government expenditures
Physical capital would include
the tools a worker has to work with
In the "paradox of thrift"
increased saving by individuals increases their chances of becoming unemployed
Long-run growth is the sustained upward trend in
aggregate output per person over several decades
When the value of a nation's imports exceeds the value of that nation's exports, the
nation is said to have
a trade deficit
Deflation
can cause decreases in output
Among the assets of a bank are
loans
The marginal propensity to save is
the fraction of an additional dollar of disposable income that is saved
The process of bringing down inflation that has been embedded into expectations is
called
disinflation
Technological improvements will
shift the production possibility frontier outward
