{"id":640,"date":"2016-07-13T15:51:52","date_gmt":"2016-07-13T15:51:52","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/accmacro\/chapter\/glossary-policy-application\/"},"modified":"2023-07-14T19:08:16","modified_gmt":"2023-07-14T19:08:16","slug":"glossary-policy-application","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/accmacro\/chapter\/glossary-policy-application\/","title":{"raw":"Glossary: Policy Application","rendered":"Glossary: Policy Application"},"content":{"raw":"
\n \t
aggregate demand (AD)<\/dt>\n \t
the amount of total spending on domestic goods and services in an economy<\/dd>\n<\/dl>\n
\n \t
aggregate supply (AS)<\/dt>\n \t
the total quantity of output (i.e. real GDP) firms will produce and sell<\/dd>\n<\/dl>\n
\n \t
aggregate demand (AD) curve<\/dt>\n \t
the total spending on domestic goods and services at each price level<\/dd>\n<\/dl>\n
\n \t
aggregate supply (AS) curve<\/dt>\n \t
the total quantity of output (i.e. real GDP) that firms will produce and sell at each price level<\/dd>\n<\/dl>\n
\n \t
aggregate demand\/aggregate supply model<\/dt>\n \t
a model that shows what determines total supply or total demand for the economy, and how total demand and total supply interact at the macroeconomic level<\/dd>\n<\/dl>\n
\n \t
full-employment GDP<\/dt>\n \t
another name for potential GDP, when the economy is producing at its potential and unemployment is at the natural rate of unemployment<\/dd>\n<\/dl>\n
\n \t
long run aggregate supply (LRAS) curve<\/dt>\n \t
vertical line at potential GDP showing no relationship between the price level for output and real GDP in the long run<\/dd>\n<\/dl>\n
\n \t
potential GDP<\/dt>\n \t
the maximum quantity that an economy can produce given full employment of its existing levels of labor, physical capital, technology, and institutions<\/dd>\n<\/dl>\n
\n \t
short run aggregate supply (SRAS) curve<\/dt>\n \t
positive short run relationship between the price level for output and real GDP, holding the prices of inputs fixed<\/dd>\n<\/dl>","rendered":"
\n
aggregate demand (AD)<\/dt>\n
the amount of total spending on domestic goods and services in an economy<\/dd>\n<\/dl>\n
\n
aggregate supply (AS)<\/dt>\n
the total quantity of output (i.e. real GDP) firms will produce and sell<\/dd>\n<\/dl>\n
\n
aggregate demand (AD) curve<\/dt>\n
the total spending on domestic goods and services at each price level<\/dd>\n<\/dl>\n
\n
aggregate supply (AS) curve<\/dt>\n
the total quantity of output (i.e. real GDP) that firms will produce and sell at each price level<\/dd>\n<\/dl>\n
\n
aggregate demand\/aggregate supply model<\/dt>\n
a model that shows what determines total supply or total demand for the economy, and how total demand and total supply interact at the macroeconomic level<\/dd>\n<\/dl>\n
\n
full-employment GDP<\/dt>\n
another name for potential GDP, when the economy is producing at its potential and unemployment is at the natural rate of unemployment<\/dd>\n<\/dl>\n
\n
long run aggregate supply (LRAS) curve<\/dt>\n
vertical line at potential GDP showing no relationship between the price level for output and real GDP in the long run<\/dd>\n<\/dl>\n
\n
potential GDP<\/dt>\n
the maximum quantity that an economy can produce given full employment of its existing levels of labor, physical capital, technology, and institutions<\/dd>\n<\/dl>\n
\n
short run aggregate supply (SRAS) curve<\/dt>\n
positive short run relationship between the price level for output and real GDP, holding the prices of inputs fixed<\/dd>\n<\/dl>\n","protected":false},"author":32,"menu_order":41,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-640","chapter","type-chapter","status-publish","hentry"],"part":599,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapters\/640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/wp\/v2\/users\/32"}],"version-history":[{"count":1,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapters\/640\/revisions"}],"predecessor-version":[{"id":641,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapters\/640\/revisions\/641"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/parts\/599"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapters\/640\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/wp\/v2\/media?parent=640"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/pressbooks\/v2\/chapter-type?post=640"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/wp\/v2\/contributor?post=640"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accmacro\/wp-json\/wp\/v2\/license?post=640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}