automatic stabilizers: - provisions in the law that imply automatic increases in government spending or decreases in taxes when real output declines, autonomous consumption: - consumption spending that is not related to the level of disposable income, autonomous expenditure: - the portion of planned aggregate expenditure that is independent of output, consumption function: - the relationship between consumption spending and its determinants, in particular, disposable income, consumption function equation: - C = C + (MPC)(Y-T), contractionary policies: - government policy actions designed to reduce planned spending and output, disposable income: - the after-tax amount of income that people are able to spend, expansionary policies: - government policy actions intended to increase planned spending and output, expenditure line: - a line showing the relationship between planned aggregate expenditure and output, income-expenditure multiplier (or multiplier): - the effect of a one-unit increase in autonomous expenditure on short-run equilibrium output, induced expenditure: - the portion of planned aggregate expenditure that depends on output Y, marginal propensity to consume (mpc): - the amount by which consumption rises when disposable income rises by $1; we assume that 0 < mpc < 1, menu costs: - the costs of changing prices, planned aggregate expenditure (PAE): - total planned spending on final goods and services, short-run equilibrium output: - the level of output at which output Y equals planned aggregate expenditure PAE; the level of output that prevails during the period in which prices are predetermined, stabilization policies: - government policies that are used to affect planned aggregate expenditure, with the objective of eliminating output gaps, wealth effect: - the tendency of changes in asset prices to affect households’ wealth and thus their consumption spending,

Chapter 13

Друкувати
Вбудувати

Список переможців

Візуальний стиль

Параметри

Обрати інший шаблон

Відновити автоматично збережене: ?