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Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
code of Hammurabi
Aggregate Spending
The total amount of spending by all sectors of an economy on goods and services.
Inflation
The speed at which the cumulative price for goods and services heightens, lowering the power to make purchases.
Money Demand
The desire or need for holding money as opposed to investing or spending it.
Equation of Exchange
The equation of exchange is a macroeconomic formula that relates the money supply, its velocity, the price level, and an index of expenditures in an economy, typically expressed as MV = PQ.
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