Study Guide
Ch. 8-13 Exam #3
Chapter 8 – The Keynesian Model
Ability-to-Pay vs. Benefits-Received
Classical economic theory
Revenues – taxes received
Consumption function
Types of Taxes –
- Progressive
- Regressive
- Proportional (Flat)
John Maynard Keynes
Saving vs. Dissaving
Chapter 10 – Agg Demand and Supply
Aggregate Demand – non price determinant
Aggregate Supply – Keynesian,
Intermediate, Classical ranges & non price
Public Choice Theory – Majority-Rule
Problem, Special-Interest Group Effect,
Rational Voter Ignorance, Bureaucratic
Inefficiency, Shortsightedness Effect
Chapter 13 – Federal Deficits, Surpluses,
and the National Debt
Budget deficits
National Debt
AD and AS Curve – changes and shifts
History of the deficits, debts, and surpluses
Cost-push and Demand-pull Inflation
Burden of Debt Debate (3) b
Chapter 11 – Fiscal Policy
Crowding-out vs. Crowding-in
Expansionary vs. Contractionary Fiscal
- taxes and government spending
Automatic stabilizer
Supply-side Economics
Laffer Curve
Chapter 12 – The Public Sector
Government Expenditures (outlays)
*Take a look at the notes you/we have taken
and the textbook that corresponds. Also,
take a look at questions that we have
answered from the end of each chapter…it
will help you with the short answer portion
of the test. The practice multiple choice
questions will help you with that part of the
test too! Good Luck!