ECON 2010 Chapter : ECON 2010 Ch 13 Notes

4 views8 pages
15 Mar 2019
School
Department
Course
Professor

Document Summary

Gdp, then : y = c + i + g + nx, the wealth effect: how a change in the price level affects. Consumption: the phenomenon of price level fluctuations affecting consumption is called the wealth effect. Lower prices increases perceived wealth and increases consumption. Higher prices has the reverse effect: the interest-rate effect: how a change in the price level affects. Investment: the impact of the price level on investment is known as the interest-rate effect, the international-trade effect: how a change in the price level. Affects net exports: the impact of the price level on net exports is known as the international-trade effect, shifts of the aggregate demand curve versus. Demand curve will shift to the left: aggregate demand, governemt can increase or decrease spending (g) and/or taxes (t) Increasing spending or decreasing taxes will increase ad. More money is being spent (g) or is available to be spent (less t).

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions