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11 Terms

1
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Aggregate Demand (AD)

Shows the relationship between the overall price level and the quantity of goods and services demanded in the economy.

2
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Aggregate Supply (AS)

Represents the total quantity of goods and services that producers in an economy are willing and able to supply at a given overall price level.

3
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Short-Run Aggregate Supply (SRAS)

Shows the relationship between the price level and the quantity of goods and services supplied in the short run.

4
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Long-Run Aggregate Supply (LRAS)

Represents the potential output of the economy when all resources are fully employed.

5
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Loanable Funds Supply (LFS)

Shows the relationship between the interest rate and the quantity of loanable funds supplied.

6
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Loanable Funds Demand (LFD)

Shows the relationship between the interest rate and the quantity of loanable funds demanded.

7
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Money Supply (MS)

The total amount of money available in the economy, determined by the central bank.

8
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Money Demand (MD)

Shows the relationship between the nominal interest rate and the quantity of money demanded.

9
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Short-Run Phillips Curve (SRPC)

Shows the inverse relationship between inflation and unemployment in the short run.

10
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Long-Run Phillips Curve (LRPC)

Represents the natural rate of unemployment.

11
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Production Possibilities Curve (PPC)

Shows the maximum combinations of two goods or services that an economy can produce when all resources are fully and efficiently employed.