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18 Cards in this Set

  • Front
  • Back
social science that is the study of how people make choices to satisfy their unlimited wants
Study of choices that individuals make, the way these choices interact in markets, and the influence of governments
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)
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
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
a process in which the price level is rising and money is losing value
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....