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8 Cards in this Set
- Front
- Back
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a payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy. |
Transfer Payments |
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The time policymakers must wait for economic data to be collected, processed, and reported. Most macroeconomic data are not available at least one quarter (three months) after the fact. |
Information lag |
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The time it takes for policymakers to confirm that the economy is trending in or out of a recession. Short-term variations in key economic indicators are typical and sometimes represent nothing more than randomness in data. |
Recognition lag |
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The time it takes Congress and the administration to decide on a policy once a problem is recognized. |
Decision lag |
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The time required to turn fiscal policy into law and eventually have an impact on the economy. |
Implementation lag |
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Arises from deficit spending requiring the government to borrow, thus driving up interest rates and reducing consumer spending and business investment. |
Crowding-out effect |
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1.
a supposed inverse relationship between the level of unemployment and the rate of inflation. |
Phillips curve |
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Both unemployment rates and inflation goes up |
Stagflation |
