Chapter 13 Quiz

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Macroeconomics

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10 Terms

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aggregate demand
the total demand for final goods and services in an economy at a given time
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aggregate supply
the total supply of goods and services available to a particular market from producers.p
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wealth
the net value of one's accumulated assets
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wealth effect
the change in the quantity of aggregate demand that results from wealth changes due to price-level changes
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interest rate effect
occurs when a change in the price level leads to a change in interest rates and, therefore, in the quantity of aggregate demand
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international trade effect
occurs when a change in the price level leads to a change in the quantity of net exports demanded
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long run
a period of time sufficient for all prices to adjust
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short run
period of time in which some prices have not yet adjusted
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supply shocks
surprise events that change a firm's production costs
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price cap
a form of economic regulation that establishes an upper limit on the prices that a utility provider can charge.