True or False Questions:
Recessionary Expenditure Gap- Aggregate expenditures by which aggregate expenditures at the full employment GDP falls short of those required to achieve full employment GDP.
Private Closed Economy- An economy that includes consumer, business and government segments of the economy.
Lump sum taxes- A tax of a constant amount so the government obtains the same amount of tax at each level of GDP.
Aggregate Supply schedule- A relationship between a nations price level and the amount of real domestic output that business produce.
Real Rate of Interest effect- The Nominal Rate of Interest earned on a project.
Savings- savings are planned investments by the consumer.
Wealth effect- The dollar amount of all the assets owned minus the dollar amount of all the liabilities or debt.
Savings Schedule- GDP less investment = savings
Aggregate Demand Schedule- a schedule that shows the amount of a nations output (real GDP) that buyers desire to purchase at each price level.
Producivity- The measure of the nations level of real output and the amount of resources used to produce the output, less labor cost.
Multiplier effect- Measures the change in GDP to spending.
Injection- Investment by private business into the economy for capital goods is and injection into the economy.
Consumption schedule- The measurement of Disposable income less savings.