econ

the condition AD=AS determines the ____ ___ equiulibrium

short run

which of the following are conisdered tools of fiscal policy

-changes in taxes -changes in govt. spending

most federal spending cocentrates of four areas

-interest on the national debt -health -pensions and income security -national defense

expansionary fiscal policy

-involves increasing govt. purchases an decreasing taxes -in the application of fiscal policy to increase aggregate demand

a decline in real output for at least two consecutive quarters is called

a recession

the short term flucutations experiences in teh economy due to changes in levels of economic activity refers to the _____ cycle

business

________ + gross investment (I) + govt. purchases (G) + Next exports (NX) characterizes real GDP expenditures

consumption

full employment and low inflation can be fostered using both ____ and ____ fiscal policy

contractionary expansionary

the national debt is the accumulations of ___ and ___ over time

deficits surpluses

the application of fiscal policy to increase aggregate demand is called ______ fiscal policy

expansionary

changes in govt. purchases and or taxes designed to achieve full employmnet and low inflation is called

fiscal policy

the level of real GDP produced in an economy when it is operating at the natural rate of unemployment is called

full-employmnet GDP

the concept that an additional dollar of expenditures will result in the creation of more than one dollar's worth of real GDP is called the ___________ effect

multiplier

exports minus imports gives us _________ exports

net

a decline in real output for at least two consecutive quarters is called an ____ a phase of the business cycle characterized by increasing real GDP income and employment is called an ______

recession expansion

suppose interest rates in teh US fell, this will affect the ____ side of the foreign exchange market and cause exchange rates to ______

supply rise

the multplier effect is

the concept that an additiaonl dollar of expenditures will result in the creation of more than one dollars worth of real GDP

state soruces of revenue vary widely

true