March 18, 2008

Review For Exam

Posted in Aggregate Demand, Aggregate Supply at 4:21 pm by davidprudente

Chapter 31

  • Why the AD curve slopes downward:
    • wealth effect
    • interest-rate effect
    • exchange-rate effect
  • Factors that shift the AD curve:
    • Δ Consumption
    • Δ Investment
    • Δ Government Spending
    • Δ Net Exports
  • Why the AS curve slopes upward:
    • Misperceptions theory
    • Sticky-wage theory
    • Sticky-price theory
  • Why the SRAS curve might shift
    • Δ in Labor
    • Δ in Technology
    • Δ Natural Resources
    • Δ Capital
    • Δ in expected price level

Chapter 32

  • Liquidity preference theory
  • MPC & MPS
  • Spending Multiplier 1/1-MPC
  • The Crowding-out Effect
  • Automatic Stabilizers

Chapter 33

  • Phillips Curve
  • Natural Rate Hypothesis
  • Supply Shock
  • Stagflation
  • Sacrifice-Ratio
  • Rational Expectations Theory


  1. Christine C said,

    yay! you remembered to put it on the blog site!

  2. davidprudente said,

    I Rock!

  3. Mike M said,
    The link to Sudhir Venkatesh’s interview on the Colbert Report, as promised.

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