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National Income and Price Determination

Across
Shifter of SRAS based on changes in subsidies for producers, taxes on producers, and government regulations
Type of fiscal policy that reduces unemployment and increases GDP
Shifter of AD based on the changes in consumer expectations, consumer debt, income taxes, and disposable income
Below or less than full employment, negative output gap
Effect that explains how higher interest rates discourage consumer spending and business investment
Effect that explains how exports fall and imports rise causing real GDP demanded to fall
Type of fiscal policy in which permanent spending or taxation laws are enacted to work counter cyclically to stabilize the economy
Type of fiscal policy that reduces inflation and decreases GDP
Type of fiscal policy in which Congress creates new bills that are designed to change AD
Effect that explains how lower price levels increase purchasing power and increase expenditures
Shifter of SRAS based on changes in supply shocks, inflationary expectations, and prices of domestic and imported resources
Shifter of SRAS based on changes in technology
Down
Shifter of AD based on the changes in government expenditures such as decrease in defense spending
Shifter of AD based on the changes in real interest rates, future business expectations, productivity and technology, and business taxes
In long run equilibrium when the economy is at potential output
Effect that shows how spending is magnified in the economy