Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/18

Click to flip

18 Cards in this Set

  • Front
  • Back
economics
social science that is the study of how people make choices to satisfy their unlimited wants
microeconomics
Study of choices that individuals make, the way these choices interact in markets, and the influence of governments
macroeconomics
studies the behavior of the economy take as a whole. studies the performance of the national economy and the global economy
opportunity cost
the highest-valued alternative that we give up to something
ceteris parbus
other things being equal--all other relevant things remaining the same
Great Depression
a decade (1929-1939) of high unemployment and stagnant production throughout the world economy
John Maynard Keynes
author of The General Theory of Employment, Interest, Money
Keynes' Theory
Depression and high unemployment result from insufficient private spending and that to cure these problems, the government must increase its spending (focused primarily on short term)
Keynesian
An economist who believes that left alone, the economy would rarely operate at full employment, and that to achieve full employment, active help from fiscal policy and monetary policy is required
Keynesian theory of the business cycle
A theory that regards volatile expectations as the main source of economic fluctuations
Recession
a business cycle phase in which real GDP decreases for at least two successive quarters
Business Cycle
the periodic but irregular up-and-down movement in production
Inflation
a process in which the price level is rising and money is losing value
Deflation
a process in which the price level falls--a negative inflation
Budget Deficit
a government's budget balance that is negative--expenditures exceed tax revenues
Budget surplus
a government's budget balance that is positive--tax revenues exceed expenditures
Balanced budget
a government budget in which tax revenues and expenditures are equal
federal budget 1990's
real GDP was growing rapidly...recession in 1990-91....