ECN2801
Fall
2017 Review
for Exam 2
Dr.
Dao
·
Real Balance Effect
·
Effect of Consumption on aggregate demand
·
Expectations about future prices
·
Interest Rate Effect
·
Effect of Income Taxes on aggregate demand
·
Business Optimism
·
Effect of Business Taxes on aggregate demand
·
Effect of Appreciation or Depreciation on Net Exports
·
Effect of Wage rates on short-run aggregate supply (SRAS)
·
Effect of prices of nonlabor inputs on short-run aggregate supply
(SRAS)
·
Adverse Supply Shock
·
Effect of Labor Productivity on short-run aggregate supply (SRAS)
·
Short-run Equilibrium
·
Effect of changes in Investment on aggregate demand
·
Reasons for downward sloping AD curve
·
Short-run vs. Long-run Aggregate Supply Curve
·
Full employment real GDP
·
Recessionary (Contractionary) Gap
·
Inflationary (Expansionary) Gap
·
Self-regulating Economy
·
Classical Economics
·
Laissez-faire Macroeconomic Policy
·
What will happen when the economy is in a recessionary gap?
·
What happens if the economy is operating at a point beyond its
institutional PPF?
·
Say’s Law in a money economy
·
Classical View of the Credit Market
·
Relationship between amount of funds firms invest and the interest rate
·
Classical Position on Wages and Prices
·
What Happens when Total Production is Greater than Total Expenditures?
·
Two Major Curves or Lines in the TE-TP diagram
·
What Happens when TE > TP? When TP > TE? When TP = TE?
·
Relationship between Consumption and Disposable Income
·
What Determines Savings according to Classical Economists? According to
Keynes?
·
Efficiency Wage Model
·
Keynes’s The General Theory of
Employment, Interest, and Money
· Keynes’s View on what determines Investment