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4 Cards in this Set
- Front
- Back
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Aggregate Supply Curve
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Shows for each possible price level, the quantity of goods and services that all the nation's businesses are willing to produce during a specified period of time, holding all determinants of aggregate quantity suppled constant
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Productivity
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The amount of output produced by a unit of input
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Self-Correcting Mechanism
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The economy's way money wages react either a recessionary gap or an inflationary gap. Wage changes shift the aggregate supply curve and therefore change equilibrium GDP and the equilibrium price level
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Stagflation
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Inflation that occurs while the economy is slowly growing, or having a recession
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