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9 Cards in this Set

  • Front
  • Back
stabilization policies
fiscal and monetary policy
aggregate demand management policies
govt policies that change the level of aggregate income in the economy by affecting C, I, G and/or (X-M)
fiscal policy
the deliverate change in either govt spending or taxes to stimulate or slow down the economy
expansionary fiscal policy
either increasing govt spending and/or decreasing taxes
contractionary fiscal policy
increasing taxes or decreasing govt spending
recessionary gap
equilibrium income below potential income
multiplier
= 1/(1-mpe)
inflationary gap
difference between equilibrium income and potential income when equilibrium income exceeds potential income
trade balance
export - import