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7 Cards in this Set
- Front
- Back
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Classical economies |
The idea that free markets can regulate themselves |
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Productive capacity |
The maximum output that an economy can produce without big increases in inflation |
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Demand side economics |
The idea that government spending and tax cuts help an economy by raising demand |
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Keynesian economics |
A form of demand side economies that encourages government action to increase or decrease demand and output |
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Multiplier effect |
The idea that every one dollar of government spending creates more than one dollar in economic activity |
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Automatic stabilizer |
A government program that changes automatically depending on GDP and a persons income |
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Supply side economics |
A school of economics that believe tax cuts can help an economy by raising supply |
