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Chapters 11 & 14

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  24           25          
26                   27   28      

3.______ Policy is the use of government taxes & spending to alter macroeconomic outcomes
5.Prices fall = Real Income _____
7.______ equilibrium is the unique combination of price level & real output that is compatible with both aggregate demand and aggregate supply
11.AD curve is downward sloping for three reasons: real balances/ wealth effect, _________ rate effect, & foreign trade effect
14.______ Policy is the use of money & credit controls to influence macroeconomic activity
19.Shift in AD & AS: shift rightward= ______ demand/supply; shirt leftward= _____ demand/supply
21.Monetary Policy is the use of ______ & _______ rates to influence macroeconomic policy
22.Production costs tend to _____ as producers expand output
24._____ Wrote “General Theory of Employment, Interest, and Money” in 1936
26.________-________ Policy is the use of tax rates, (de)regulation, & other mechanisms to increase output (production) & raise employment with minimal pressure on prices
29.Number of Federal Reserve Banks
30.Number of members on the Board of Governors
31.The year-to-year expansion in production capacity
32.The Fed sells bonds to ______ bank reserves
1.The aggregate supply curve is relatively flat when ____ is underutilized
2.Rate of output increases when the ______ level rises
3.Average Prices fall = Interest Rates _____
4.Term _______ coined in 195, is the study of the aggregate economic behavior of the economy as a whole
6.The primary source of economic growth in the short run comes from increased use of existing _______
7.The most frequently used Monetary Policy tool = Open ______ ______
8.The Fed buys bonds to ______ bank reserves
9.The interest rate banks charge each other for lending reserves on a temporary basis
10.Members of the ______________ of the Federal Reserve System along with other members of the Federal Open Market Committee establish interest rates to affect the level of the Money Supply
12.Aggregate _______ shows the relationship between average price levels and the quantity of aggregate output demanded by all sectors of the economy
13.Discounting is a term used to describe the process by which a _____ borrows reserved from the Federal Reserve
15.The use of money and credit controls to influence macro activity
16.The rate of interest charged by the Federal Reserve banks for lending reserves to private banks
17.International _______ are the international value of the dollar; trade & payment balances with other countries
18.According to ____’s Law, “supply creates its own demand;” assumes wages & prices are flexible
20.Keynesian theory focuses on mechanisms for ______ aggregate demand
23.Aggregate ______ shows the relationship between the average price level and the quantity of aggregate output produced
25.Number of Federal Reserve Bank Branches
27.The total volume of goods & services produced (real GDP)
28.The ______ value of money is measured by how many goods & services each dollar will buy

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