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Abstract Data Type (ADT) Quiz item - Constructor Question & Answer - Selectors Purpose - Manage complexity of list indices in a programTwo ways to iterate through or transverse a list of items.

Algorithm - sequence of command, a loop and a conditional.You got out of length correct, resulting in a grade of length1004A curve that measures maximum output,PPC CurveWhat happens to AD when consumption increases?,AD increasesWhat do we call the situation when output goes down and price level goes up?,StagflationWhere is unemployment hidden on a graph?,In the outputWhat does LRAS stand for?,Long run aggregate supplyWhat do we call the situation where prices are rising?,InflationA curve that measures maximum output,PPC CurveAugusta,MaineBoise,IdahoColumbia,South CarolinaDes Moines,IowaQuestions,Answerssome measure that captures all of the prices that exist in an economy; the CPI or the GDP deflator are two such measures of the overall price level.,price level"a graphical model that shows the relationship between the price level and spending on real GDP; the AD curve shows that if the price level decreases, then real GDP increases.",aggregate demanda shift of the entire AD curve that will occur due to a change in one of the categories of AD that is not in response to a change in the price level,change in aggregate demanda change in the amount of output demanded that occurs due to a change in the price level,movement along AD"spending that is part of the “C” category of real GDP that is sensitive to interest rates; for example, if you have to take out a loan to buy a big fancy car, you are more likely to do that if interest rates are low.",interest-sensitive consumption"what occurs when a change in the price level leads to a change in consumer spending; this happens because assets have more or less purchasing power. If the price level decreases, then money in your bank account can suddenly buy more stuff, so you feel wealthier and buy more stuff.",real wealth effect"what occurs when a change in the price level leads to a change in interest rates and interest sensitive spending; when the price level drops, you keep less money in your pocket and more in the bank. That drives down interest rates and leads to more investment spending and more interest-sensitive consumption.",interest rate effect"(sometimes called the foreign purchases effect) when a change in the price level in one country leads to other countries purchasing more of that country’s goods. That makes net exports (and therefore real GDP) increase. If the price level in Maxistan decreases, then its goods are cheaper relative to Jacksonia, which means Maxistan’s exports increase and its real GDP increases.",exchange rate effect"the use of taxes, government spending, or government transfers to affect real GDP",fiscal policy"the use of the money supply to impact interest rates, which in turn affects real GDP",monetary policy"when a change in spending leads to a much larger change in real GDP than the initial change; for example, if a government spends $100, and that change in spending leads to real GDP increasing by $400, then the multiplier effect has multiplied the initial impact four times.",multiplier effect"changes in spending that happen in response to something besides an increase in income; for example, if the government decides to spend money on building a new bridge because they want to build a bridge (not because they have extra income lying around) or one firm decides to build a $10 million fidget spinner factory. The key thing that makes a change autonomous is that it is not happening in response to an increase in income,",change in autonomous spending"the proportion of any additional income that is spent; for example, if your MPC is .75 that means for every $1 more income you get, you will save 25 cents and spend 75 cents.",marginal propensity to consume (MPC)the proportion of any additional income that is saved; note that MPC+MPS=1,marginal propensity to save (MPS)"the magnitude of how much real GDP will change in response to an autonomous change in aggregate spending; for example, if the expenditure multiplier is 5, then $100 in government spending results in a total increase in real GDP of $500. This means that if a country has an output gap of $500, it doesn’t have to increase government spending by $500 to close that gap.",expenditure multiplier"the ratio of the total change in real GDP caused by a change in taxes; for example, if the tax multiplier is -4, then a $100 tax increase will decrease real GDP by $400. For example, if the government has an output gap of $400 million and the tax multiplier is -4, then the government can close that gap by decreasing taxes by only $100 million.",tax multipliera graphical model that shows the positive relationship between the aggregate price level and amount of aggregate output supplied in an economy,short-run aggregate supply (SRAS)"in macroeconomics, a period in which the price of at least one factor of production cannot change; for example, if wages are stuck at a certain level, we would still be in the short-run.",short-run(also called nominal price rigidity) the idea that some prices and wages are not fully flexible and cannot completely respond to changes such as inflation or deflation,sticky prices or wagesthe idea that firms might not change their prices when there is a change in the price level because it is costly to do so; menu costs have been proposed as one of the reasons that prices are “sticky” in an economy.,menu costs"anything that will shift the SRAS curve, also called an aggregate supply shock; if the prices of any of the factors of production change, or firms expect those prices to change, then the SRAS curve will shift.",determinants of SRASwhat firms believe will happen to the prices of the factors of production,expectations"a sufficient period of time for nominal wages and other input prices to change in response to a change in the price level; the long-run is not any fixed period of time. Instead, this refers to the time it takes for all prices to fully adjust",long-run"a curve that shows the relationship between price level and real GDP that would be supplied if all prices, including nominal wages, were fully flexible; price can change along the LRAS, but output cannot because that output reflects the full employment output.",long-run aggregate supply (LRAS)(also called potential output) the amount of real GDP that an economy would produce if it is using all of its factors of production efficiently,full employment output"the belief that it is possible for all prices to fully adjust; prior to the Great Depression, economists generally assumed that prices weren’t stuck, which meant that the “old school” way of thinking about aggregate supply was that it was a vertical line like the LRAS.",The classical assumption"a graphical model used to understand economic fluctuations, which contains aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS)",AD-AS model"when the quantity of aggregate output supplied is equal to the quantity of aggregate output demanded; graphically, this is the price level and real GDP associated with the intersection of the SRAS and AD curves.",short-run macroeconomic equilibriumthe aggregate price level that will exist when an economy is in short-run equilibrium; remember that the price level is a measure such as the CPI.,short-run equilibrium price levelthe quantity of aggregate output produced in the short-run macroeconomic equilibrium; this is the amount of real GDP that will exist when AD intersects SRAS.,short-run equilibrium output(sometimes called a negative output gap) when the current output is less than potential output,recessionary gap(sometimes called a positive output gap) when the current output is greater than potential output,inflationary gap"when the current output is equal to potential output; graphically, this would be the price level and real GDP associated with the intersection of AD, SRAS, and LRAS.",long-run macroeconomic equilibrium"an unexpected change that will shift either the AD or SRAS curve; if a change is anticipated, that anticipation would already have been incorporated into the curve, so a change must be unexpected in order to cause a change.",shock"an unexpected change that shifts AD; a positive demand shock (such as an increase in consumer confidence) increases AD, but a negative demand shock decreases AD.",demand shock"an unexpected change that shifts SRAS; a positive supply shock increases SRAS, but a negative supply shock decreases SRAS.",supply shockthe combination of a stagnating (falling) aggregate output and a higher price level (inflation); stagflation occurs when SRAS decreases.,stagflationthe process through which an economy will return to full employment output even without government intervention,long-run self-adjustmentan increase in an economy’s ability to produce goods and services; in the AD-AS model economic growth is represented by an increase in the LRAS.,economic growth"the use of policy (such as fiscal policy or monetary policy) to reduce the severity of recessions and excessively strong expansions; the goal of stabilization policy is not to eliminate the business cycle, just to smooth it out.",stabilization policy"the use of taxes, government spending, and government transfers to stabilize an economy; the word “fiscal” refers to tax revenue and government spending.",fiscal policy"fiscal policy that requires an action by a government to occur; for example, if a government has to pass a law to change government spending or taxes. A future lesson in this course discusses automatic stabilizers, which are fiscal policies that require no action to be taken.",discretionary fiscal policy"using changes in the money supply or the interest rate to affect key macroeconomic variables; fiscal policy is policy by governments, while monetary policy is policy by central banks.",monetary policytaxes that do not depend on the taxpayer's income; an example of a lump-sum tax would be paying a fixed dollar amount in taxes that doesn’t depend on your income.,lump-sum taxes"the use of fiscal policy to expand the economy by increasing aggregate demand, which leads to increased output, decreased unemployment, and a higher price level. Expansionary fiscal policy is used to fix recessions.",expansionary fiscal policy"the use of fiscal policy to contract the economy by decreasing aggregate demand, which will lead to lower output, higher unemployment, and a lower price level. Contractionary fiscal policy is used to fix booms.",contractionary fiscal policy"payments made to groups or individuals when no good or service is received in return; transfers are the opposite of a tax (you receive transfers from the government, but pay taxes to the government).",transfer payments"another way of saying ""delay""; fiscal policy is associated with data lags, recognition lags, decision lags, and implementation lags.",lagthe time it takes to get macroeconomic data such as real GDP or the unemployment rate,data lagthe delay in fiscal policy caused by the time that it takes to realize that there is a problem to be corrected,recognition lagthe delay in fiscal policy caused by the time that it takes to decide on a course of action,decision lagthe time it takes to put action into practice,implementation lagwhen expenditures equal income; a government has a balanced budget when tax revenue collected equals government spending.,balanced budget"when expenditures exceed income; when the government spends $10 millionmore than it collects in tax revenue in a year, it has a $10 million deficit that year.",deficit"the accumulated deficits over time; when the government runs a $10 million deficit every year for three years, it accumulates $30 million in debt.",debtthe spending multiplier that will exist when any change in government spending is offset entirely by an equal change in taxes; the balanced budget multiplier is always equal to one.,balanced budget multiplier"a fiscal policy action that requires a deliberate act, such as passing a spending bill or a tax plan",discretionary fiscal policyfiscal policy actions that require no action and will occur automatically based on the current phase of the business cycle; the most common automatic stabilizers are progressive tax systems and transfer payments.,automatic stabilizers"a way of taxing that has higher tax rates at higher levels of income; for example, Holly makes $60,000 per year and pays 10% percent in income taxes, but Nasrin makes $80,000 per year and pays 15% percent in income taxes.",progressive tax system"the amount of income left over after taxes are deducted; if you make $100 per week, but $10 in taxes are deducted, you have $90 in disposable income that you can actually spend.",disposable income"(sometimes called income supports) payments that received without the exchange of a good or service, such as welfare payments or unemployment compensation; when people lose jobs during recessions, unemployment compensation will mean that consumption will not decrease by as much.",transfer payments