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