Study.AggregateUNEMP (1)

Study.AggregateUNEMP (1) - increase in each range. 4....

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STUDY GUIDE ECON 201 Test #4 Unemployment. 1. Describe the history of unemployment. 2. Clearly understand: a. Potential output b. Target rate of unemployment c. Capacity utilization rate d. Frictional unemployment e. Structural unemployment f. Cyclical unemployment g. Primary and secondary labor market h. Induced unemployment i. Sticky wages j. Seasonal unemployment k. Contingency work force l. Disguised unemployment m. Discouraged workers n. Underemployment 3. Describe the Classical and Keynesian explanation of the Great Depression. AGGREGATE DEMAND AD/AS 1. Define AD and AS and explain the negative slope of the AD curve. 2. Name the different ranges of the AS curve and describe the features of each range. 3. Describe what happens to the price level and the demand for national output
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Unformatted text preview: increase in each range. 4. Explain the meaning of a AD shortfall, and AD excess. Aggregate demand AE/AP 5. What are the components of Aggregate expenditure? 6. Write the aggregate expenditure function, and describe autonomous and induced expenditure. 7. Describe when the economy would have a recessionary gap/inflationary gap. 8. Define the multiplier and explain how it is used if the economy has a recessionary gap/inflationary gap. 9. Draw the AP curve and explain why AP is equal to Income in the macro economy. 10. Clearly understand the slope and the intercept of the AE curve....
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This note was uploaded on 03/24/2010 for the course ECON 201 taught by Professor Fairchild during the Spring '08 term at Northern Virginia.

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Study.AggregateUNEMP (1) - increase in each range. 4....

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