Macroeconomics Glossary: Key Terms in Aggregate Demand and Supply, Quizzes of Introduction to Macroeconomics

Download Macroeconomics Glossary: Key Terms in Aggregate Demand and Supply and more Quizzes Introduction to Macroeconomics in PDF only on Docsity! TERM 1 aggregate demand curve DEFINITION 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 TERM 2 wealth effect of a change in the aggregate price level DEFINITION 2 the effect in consumer spending caused by the effect of a change in the aggregate price level on the purchasing power of cosumer's assers TERM 3 interest rate effect of a change in the aggregate price level DEFINITION 3 the effect on consumer spending and investment spending caused by the effect of a change in aggregate price level on the purchasing power of consumer's and firms' money holdings TERM 4 aggregate supply curve DEFINITION 4 shows the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy TERM 5 nominal wages DEFINITION 5 the dollar amount of the wage paid TERM 6 sticky wages DEFINITION 6 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 TERM 7 short run aggregate supply curve DEFINITION 7 shows the relationship between the aggregate price level TERM 8 short-run macroeconomic equilibrium DEFINITION 8 when the quantity of aggregate output supplied is equal to the quantity demanded TERM 9 short-run equilibrium aggregate price level DEFINITION 9 the aggregate price level in short run macroeconomic equilibrium TERM 10 short run equilibrium aggregate output DEFINITION 10 the quantity of aggregate output produced in the short run macroeconomic equilibrium