Study_Guide_for_Test_3 - Study Guide for Test 3 Chapter 10...

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Chapter 10 1. Be able to do problems like those on the Aplia problem set for chapter 10. 2. Memorize the formula for the spending multiplier (1/(1-mpc) and for the AE curve. 3. Understand the relationship between the AE curve and the Aggregate Demand curve (Study 10F and 10G) 4. Be able to determine how a change in any of the parameters of the AE equation affects the graph of the AE curve and the graph of the AD curve. (10B, 10C, 10D, 10F, and 10G). 5. Thoroughly understand the 45-degree line diagram 10C, 10D, and 10E. Chapter 11 1. Be able to identify a contractionary or expansionary gap in a diagram of the AD, SRAS, and LRAS curves. (Study 11D) 2. Be able to explain how the self-correcting mechanism works to close an output gap. (See class notes from Weeks 11 and 12, your textbook on pages 236-243, and 11E-11F. Practice these concepts also by doing 12A, Part A #7 and 12A, Part B #13. 3. Study the sec tion of chapter 11 called ‘Shifts of the Aggregate Supply Curve, pages 244 -248, and the discussion of the same topic in your workbook on 11B #4. 4. Thoroughly understand the diagram below:
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This note was uploaded on 01/30/2012 for the course ECONS 102 taught by Professor Kuzyk during the Spring '08 term at Washington State University .

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Study_Guide_for_Test_3 - Study Guide for Test 3 Chapter 10...

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