Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
9 Cards in this Set
- Front
- Back
|
Okun's law
|
The negative relationship between unemployment and real GDP, according to which decrease in unemployment of 1 percentage point os associated with additional growth in real GDP of approximately 2 percent
|
|
|
leading indicators
|
Economic variables that fluctuate in advance of the economy's output and thus signal the direction of economic fluctuations
|
|
|
Aggregate demand
|
The negative relationship between the price level and the aggregate quantity of output demanded that arises from the interaction between the goods market and the money market
|
|
|
Aggregate supply
|
the relationship between the price level and the quantity of output firms produce.
|
|
|
shocks
|
an exogenous change in an economic relationship, such as the aggregate demand or aggregate supply cure.
|
|
|
demand shocks
|
Exogenous events that shift the aggregate demand curve
|
|
|
supply shocks
|
Exogenous events that shift the aggregate supply curve.
|
|
|
stabilization shocks
|
look up
|
|
|
Stabilization policy
|
public policy aimed at reducing the severity of short-run economic fluctuations
|
