Part 2. Matching: Match the Key terms in Column \"A\" with the denitions in Column \"B\" by writing the block letter of your choice from Column \"B\" in the space provided under \"A" and match the definitions in column \"B" with the meanings or examples or facts in column \"C" by writing the lower letter case of your choice in the space provided under column "B\". Column \"A\" _ 1.Aggregate Demand 2. Aggregate Demand (AD) Curve 3. Real Balance Effect 4. Monetary Wealth 5. Purchasing Power 6. Interest Rate Effect 7. International Trade Effect 8. Wealth 9. Exchange Rate Column \"B" A. The value of all assets owned, both monetary and nonmonetary. B. The price of one currency in terms of another currency. C. The quantity of goods and services that can be purchased with a unit of money. Purchasing power and the price level are inversely related: As the price level goes up (down), purchasing power goes down (up). D. The change in foreign sector spending as the price level changes. E. The changes in household and business buying as the interest rate changes (in turn, a reection of a change in the demand for or supply of credit brought on by price level changes). F. The value of a person's monetary assets. Wealth, as distinguished from monetary wealth, refers to the value of all assets owned, both monetary and nonmonetary. In short, a person's wealth equals his or her monetary wealth (e.g., $1,000 cash) plus nonmonetary wealth (e.g., a car or a house). G. The change in the purchasing power of dollar- denominated assets that results from a change in the price level. H. The quantity demanded of all goods and services (Real GDP) at different price levels, ceferis parfbus. l. A curve that shows the quantity demanded of all goods & services (Real GDP) at different price levels, ceterr's parfbus. a. Column \"C\" A pictorial representation of the negative or inverse relationship that shows the total quantity of goods & services demanded at different price levels, ceterfs pan'bus. The sum total of cash and non-cash assets or properties owned. The price of a U.S.D.($) in terms of a foreign currency. For example: $1 = 16 MXN Peso. The changes in private sector spending by consumers and businesses as interest rate changes. The total quantity of goods and services consumers are willing and able to buy in the entire economy at different price levels, cetenis parfbus. The change in the value of imports and exports as the price level changes. The amount of cash on hand, that is, wealth in the form of \"the most liquid asset" known to a human being. The change in the amount of goods and services that money can buy as a result of changes in the price level. Measures the strength or weakness of money based on the amount of goods 8. services money can buy that depends on the level of prices in the economy. As the price level rises (falls), the amount of goods and services that can be purchased decrease (increase). Part 2. Matching: Match the Key terms in Column \"A\" with the denitions in Column \"B\" by writing the block letter of your choice from Column \"B\" in the space provided under \"A\" and match the definitions in column \"B" with the meanings or examples or facts in column \"C\" by writing the lower letter case of your choice in the space provided under column \"B". Column \"A" 10. Appreciation 11. Depreciation 12. Velocity 13. Aggregate Supply 14. Short Supply (SRAS) Curve-Run Aggregate 15. Short-Run Equilibrium 16. Natural Real GDP 17. Long-Run Aggregate Supply (LRAS) Curve 18. Long-Run Equilibrium Column \"B\" J. A decrease in the value of one currency relative to j. other currencies. K. A curve that shows the quantity supplied of all goods & services(Real GDP} at different price levels, ceteris paribus. L. The condition in the economy when the quantity demanded of Real GDP = the (short-run) quantity supplied of Real GDP. This condition is met where the aggregate demand curve intersects the short-nin aggregate supply curve. M. The LRAS curve is a vertical line at the level of Natural Real GDP. It represents the output the economy produces when wages and prices have adjusted to their nal equilibrium levels and when workers do not have any relevant misperceptions. N. The condition that exists in the economy when wages and prices have adjusted to their (nal) equilibrium levels and when workers do not have any relevant misperceptions. Graphically, long-run equilibrium occurs at the intersection of the AD and LRAS curves. 0. An increase in the value of one currency relative to other currencies. P. The quantity supplied of all goods and services (Real GDP) at different price levels, ceteris paribus. Q. The average number of times a dollar is spent to buy nal goods and services in a year. R. The Real GDP that is produced at the natural unemployment rate. The Real GDP that is produced f. Column "C" The state of an economy when aggregate (total) demand equals aggregate (total) supply in the short term. The vertical line that shows the potential of the economy to produce the maximum quantity of goods and services at \"full employment" in the long run. The state of an economy when aggregate (total) demand equals aggregate (total) supply in the long- term. The total quantity of goods and services producers are willing and able to produce and supply in the entire economy at different price levels, ceterfs pan'bus. The number of times a dollar changes hands in order to buy goods and services in a year. The amount of goods & services produced in the economy as it achieves \"full employment" in the long run. A weakening of one currency relative to other currencies. Example: when the number of units of the national currency required to buy a foreign currency has increased in the market. A pictorial representation of the positive or direct relationship that shows the total quantity goods & services supplied at different price levels, ceteris paribus. A strengthening of one currency relative to other currencies. Example: when the number of units of the national currency required to buy a foreign currency has when the economy is in long-run equilibrium. decreased in the market