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11 Cards in this Set
- Front
- Back
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Long Run Economic Growth |
the process by which rising productivity increases the average standard of living |
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Expansion |
the period in a business cycle which total production and total employment are increasing |
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Recession |
the period of a business cycle during which total production and total employment are decreasing |
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Business Cycle |
alternating periods of economic expansion and recession |
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Labour Productivity |
the quantity of goods and services that can be produced by one worker or by one hour of work |
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Capital |
manufactured goods that are used to produce other goods and services |
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Potential GDP |
the level of real GDP attained when all firms are producing at capacity |
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Financial System |
the system of financial markets and financial intermediaries through which firms acquire funds from households |
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Financial Markets |
markets where financial securities, such as stocks and bonds, are bought and sold |
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Financial Intermediaries |
firms such as banks, mutual funds, pension funds. and insurance companies, hat borrow funds form savers and lend them to borrowers |
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Market for Loanable Funds |
the interaction of borrowers and lenders that determines the market interest rate and the quantity of loanable funds exchanged |
