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Unit 5 Review

Name: ___________________________________
Horizontales
______ monetary and fiscal policy will result in an indeterminant effect on interest rates and an increase in AD.
__________ formation could be done by increasing job training or education, improving efficiency in the electrical grid, or funding more R&D to improve technology.
In order to compare countries of different sizes, and to remove the effect of population growth on the measure of real GDP, economists will look at real GDP _______________.
Policy actions including changes to government spending or taxation.
In the short run, a high inflation rate is associated with a low ________ rate.
Long run increase in real GDP per capita over time
Output per worker
_____ policy tools include changing administrated rates in a banking system with ample reserves, and changing the quantity of money supply or reserve requirements in a banking system with limited reserves.
The nominal GDP can be measured by multiplying the money supply by the _______ of money.
Verticales
The budget when government revenues are equal to government spending
When taxes levied by the government do not cover all the planned government spending and transfer payments there will be a ______ budget.
The negative impact on government spending in a deficit budget on private investment spending
_______ budget implies the government spending is less than tax revenue.
A rightward shift in the LRAS represents economic growth and a rightward shift in this curve.
The short run tradeoff shown between unemployment rate and wage rates (measured by proxy with inflation rates).
Government borrowing accumulated over time, as a result of a deficit budget