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7 Cards in this Set
- Front
- Back
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Classical economics |
The idea that free markets can regulate themselves |
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Productive capacity |
Maximum output that an economy can produce without big increases in inflation |
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Demand side economics |
Idea that government spending and tax cuts help an economy by raising demand and output |
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Multiplier effect |
Idea that every one dollar of government spending creates more than one dollar in economic activity |
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Automatic stabilizer |
Government program that changes automatically depending on GDP and a persons income |
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Supply side economics |
School of economics that believes tax cuts can help an economy by raising supply |
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Council or economic adviser |
Group of three respected economists that advise the president on economic policy |
