Econ vocab from exams

Question 1

marginal propensity to consume

Question 2

marginal propensity to spend

Question 3

Aggregate expenditure

Question 4

Marginal Benefit - Micro

Question 5

Marginal cost - Micro

Question 6

Net Exports

Question 7

Net Imports

Question 8

Short Run Aggregate Supply Curve

Question 9

Long run Aggregate Supply Curve

Question 10

Aggregate Supply

Question 11

Aggregate Demand

Question 12

Recessionary output gap

Question 13

stagflation

Question 14

High national saving rate

Question 15

low national saving rate

Question 16

Speculative demand for money

Question 17

Monetary Transmission Mechanism

Question 18

NAIRU

Question 19

constant inflation

Question 20

Non-market-clearing theories of the labour market

Question 21

sticky wages

Question 22

Structural unemployment

Question 23

primary budget deficit

structural (cyclical adjusted)

Question 24

fiscal expansion

Question 25

REAL WEALTH EFFECT (Demand)

Answer 25

Price levels fall = consumers have more money to spend, buy more

Price levels increase (because inflation) = consumers can’t afford as much, buy less

Question 26

INTEREST RATE EFFECT (Demand)

Answer 26

Price levels fall = spend more, save more, banks lend out more

Price levels increase = less saving, less money in banks, less money to lend out, less demand

Question 27

EXCHANGE RATE EFFECT (Demand)

Answer 27

Price levels fall in Canada =. foreign countries want to buy

Price levels increase in Canada = foreign countries don’t want to buy

Question 28

Neoclassical growth model

Question 29

crowding in

Question 30

crowding out

Question 31

rivalrous

Question 32

excludable

Question 33

closed economy

Question 34

open economy

Question 35

Equation for aggregate expendature