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13 Cards in this Set

  • Front
  • Back
Alternating periods of economic growth and contraction
business cycle
Supply creates its own demand
say's law
the value of final oputput produced in a given period, adjusting for changing prices.
real gdp
a decline in total output for two or more consecutive quarters
a period during which real gdp grows, but at a rate below the long term trend of 3 percent.
growth recession
The total quanity of output demanded at alternative price levels in a given time period
aggregate demand
The total quantity of output producers are willing and able to supply at alternative price levels in a given time period.
aggregate supply
the combination of price level and real output that is conmpatible with both aggregate demand and aggregate supply.
The total market value of final goods and services that could be produced in a given time period at full employment; potential GDP.
full employment gdp
an increas in the average level of prices of goods and services.
the use of government taxes and spending to alter macroeconimic outcomes.
fiscal policy
the use of money and credit controls to influence macroeconomic outcomes
monetary policy
the use of tax incentives, regulation, and other mechanisms to increase the ability and willingness to produce goods and services
supply side policy