True or False Questions:
1. Recessionary Expenditure Gap- Aggregate expenditures by which aggregate expenditures at the full employment GDP falls short of those required to achieve full employment GDP.
2. Private Closed Economy- An economy that includes consumer, business, and government segments of the economy.
3. Lump-sum taxes- A tax of a constant amount so the government obtains the same amount of tax at each level of GDP.
4. Aggregate Supply schedule- A relationship between a nation's price level and the amount of real domestic output that is produced.
5. Real Rate of Interest effect- The Nominal Rate of Interest earned on a project.
6. Savings- savings are planned investments by the consumer.
7. Wealth effect- The dollar amount of all the assets owned minus the dollar amount of all the liabilities or debt.
8. Savings Schedule - GDP less investment = savings
9. Aggregate Demand Schedule- a schedule that shows the amount of a nation's output (real GDP) that buyers desire to purchase at each price level.
10. Productivity- The measure of the level of the nation of real output and the amount of resources used to produce the output, less labor cost.
11. Multiplier effect- Measures the change in GDP to spending.
12. Injection- Investment by private business into the economy for capital goods is and injection into the economy.
13. Consumption schedule- The measurement of Disposable income less savings.
True or False Questions:
1. Recessionary Expenditure Gap- Aggregate expenditures by which aggregate expenditures at the full employment GDP falls short of those required to achieve full employment GDP.
2. Private Closed Economy- An economy that includes consumer, business, and government segments of the economy.
3. Lump-sum taxes- A tax of a constant amount so the government obtains the same amount of tax at each level of GDP.
4. Aggregate Supply schedule- A relationship between a nation's price level and the amount of real domestic output that is produced.
5. Real Rate of Interest effect- The Nominal Rate of Interest earned on a project.
6. Savings- savings are planned investments by the consumer.
7. Wealth effect- The dollar amount of all the assets owned minus the dollar amount of all the liabilities or debt.
8. Savings Schedule - GDP less investment = savings
9. Aggregate Demand Schedule- a schedule that shows the amount of a nation's output (real GDP) that buyers desire to purchase at each price level.
10. Productivity- The measure of the level of the nation of real output and the amount of resources used to produce the output, less labor cost.
11. Multiplier effect- Measures the change in GDP to spending.
12. Injection- Investment by private business into the economy for capital goods is and injection into the economy.
13. Consumption schedule- The measurement of Disposable income less savings.
