Econ 2305 Exam 3 Study Guide Lectures 18 24 Overall Review of the topics covered on TEST 3 Supply Side Economics Goal Grow the economy How Lower tax rates tax revenues Laffer curve Fewer regulations on business Mortgage meltdown Consumption function C A MPC Yd From a graph From a table Spending multiplier Impact on equilibrium GDP Output Keynesian cross diagram Equilibrium GDP occurs when consumption and investment equal real disposable income or real GDP Tax Impact on equilibrium output Consider MPC before calculating Inflation 2 types Demand push inflation Aggregate demand is greater than the short run aggregate supply Cost push inflation Short run aggregate supply decreases Graphical representation of the two is important Fiscal Policy Problems Definition Types Discretionary and Automatic Stabilizers Money Federal Reserve System Functions of the bank FDIC M1 vs M2 Topics not covered on the Test APC Money Multiplier Bank T accounts Laffer curve Appendix to Chapter 13 Great Seal Dollar Bill
View Full Document
Unlocking...