Part 2. Matching: Match the Key terms in Column "A" with the definitions 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" Column "B" Column "C" 10. Appreciation J. A decrease in the value of one currency relative to j. The state of an economy when aggregate (total) other currencies. demand equals aggregate (total) supply in the short K. A curve that shows the quantity supplied of all goods term. 11. Depreciation & services(Real GDP) at different price levels, ceteris k. The vertical line that shows the potential of the panbus. economy to produce the maximum quantity of goods L. The condition in the economy when the quantity and services at "full employment" in the long run. 12. Velocity demanded of Real GDP = the (short-run) quantity I. The state of an economy when aggregate (total) supplied of Real GDP. This condition is met where the demand equals aggregate (total) supply in the long- aggregate demand curve intersects the short-run term. 13. Aggregate Supply aggregate supply curve. . The total quantity of goods and services producers are M. The LRAS curve is a vertical line at the level of willing and able to produce and supply in the entire Natural Real GDP. It represents the output the economy economy at different price levels, ceteris paribus. 14. Short-Run produces when wages and prices have adjusted to their n. The number of times a dollar changes hands in order Aggregate Supply final equilibrium levels and when workers do not have to buy goods and services in a year. (SRAS) Curve any relevant misperceptions. o. The amount of goods & services produced in the N. The condition that exists in the economy when wages 15. Short-Run - economy as it achieves "full employment" in the long and prices have adjusted to their (final) equilibrium run Equilibrium levels and when workers do not have any relevant misperceptions. Graphically, long-run equilibrium occurs P. A weakening of one currency relative to other currencies. Example: when the number of units of the at the intersection of the AD and LRAS curves. 16. Natural Real GDP national currency required to buy a foreign currency has O. An increase in the value of one currency relative to increased in the market. other currencies. q. A pictorial representation of the positive or direct P. The quantity supplied of all goods and services (Real 17. Long-Run relationship that shows the total quantity goods & GDP) at different price levels, ceteris paribus services supplied at different price levels, ceteris Aggregate Supply Q. The average number of times a dollar is spent to buy panbus. (LRAS) Curve final goods and services in a year. r. A strengthening of one currency relative to other 18. Long-Run R. The Real GDP that is produced at the natural currencies. Example: when the number of units of the Equilibrium unemployment rate. The Real GDP that is produced national currency required to buy a foreign currency has when the economy is in long-run equilibrium decreased in the market
