Download Graphing Circles Review

Fiscal Policy
Review
1. an increase in Aggregate quantity demanded (graph)
2. a decrease in Aggregate quantity demanded (graph)
3. the three effects that cause AD to be downward-sloping
4. an increase in Aggregate demand (graph)
5. a decrease in Aggregate demand (graph)
6. an increase in SR Aggregate quantity supplied (graph)
7. a decrease in SR Aggregate quantity supplied (graph)
8. an increase in SR Aggregate supply (graph)
9. a decrease in SR Aggregate supply (graph)
10. a change in price in relation to LR Aggregate supply
(graph)
11. an increase in LR Aggregate supply w/ AD included (graph)
12. a decrease in LR Aggregate supply w/ AD included (graph)
13. an economy producing at full capacity (graph)
14. an economy in w/ a gdp surplus b/c of price (graph)
15. an economy in w/ a gdp shortage b/c of price (graph)
16. an economy in a recessionary gap (graph)
17. an economy in an inflationary gap (graph)
18. an economy moving into demand-pull inflation (graph)
19. an economy moving into cost-push inflation (graph)
20. the keynesian theory of AS w/ all ranges labeled (graph)
21. an economy fixing itself w/ flexible wages (graph)
22. an economy moving further into recession w/ sticky
wages (graph)
23. An economy being moving from recession to full capacity
by fiscal policy on a keynesian model (graph)
24. list the options for expansionary fiscal policy (stimulus)
25. list the options for contractionary fiscal policy
(restraint)
26. define discretionary and non-discretionary fiscal policy
27. an economy closes a $500 billion recessionary gap
(graph) and calculate size of policies with MPC of 0.6
28. an economy closes a $200 billion inflationary gap (graph)
and calculate size of policies with MPC of 0.8
29. an economy closes a $800 billion inflationary gap (graph)
and calculate size of policies with MPC of 0.5
30. the crowding out effect (graph) when government uses
deficit spending to close a recessionary gap
31. the net export effect (graph) when government uses tax
cuts to close a recessionary gap