CLEP Macroeconomics
Terms & Definitions
Practice Test
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T account
More liquid easy access to spend quickly. decreasing liquidity means forms of money that are harder and harder to gain access to and spend quickly
M2 plus large and long-term deposits. discontinued by the US central bank in 2006
A type of balance sheet used by banks. the assets and liabilities on which side of the T must be equal to each other
AS will shift to the right when: inputs become cheaper, more productive, or more plentiful as with new discoveries of raw materials, increases in the labor supply, decreases in wages or other input prices, improvements in education or training, decreased inflationary expectations, increased investment more capital, and technological advances; government policies reduce production costs as with tax cuts, deregulation, reform in welfare or unemployment insurance programs, weather is good; macro disturbances such as wars and natural disasters cease The opposite of each of these influences would cause the short-run AS curve to shift to the left