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20 Cards in this Set

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  • Back
macroeconomic policies
government actions designed to affect the performance of the economy as a whole
average labor productivity
output per employed worker
monetary policy
determination of the nations money
fiscal policy
decisions that determine the governments budget, including the amount and composition of government expenditures and goverment revenues
structural policy
government policies aimed at changing the underlying structure, or institutions, of the nations economy
positive analysis
addresses the economic consequences of a particular event or policy, not whether those consequences are desirable
normative analysis
addresses the question of whether a policy should be used; inevitably involves the values of the person doing the analysis
aggregation
the adding up of individual economic variables to obtain economywide totals
Government actions designed to affect the performance of the economy as a whole are macroeconomic policies. True/False?
True
Standard of living means that __________.
the degree to which people have access to goods and services that make their life easier, healthier, safer, and more enjoyable
Average labor productivity is output per employed worker. True/False?
True
__________ is the process of steady increase in the quantity and quality of the goods and services the economy can produce.
Economic growth
Periods of rapid economic growth are called expansions, and slowdowns in economic growth are called recessions.
True
Decisions that determine the governments budget, including the amount and composition of government expenditures and government revenues are __________.
fiscal policy
Decisions that determine the nations money supply are referred to as __________.
monetary policies
Decisions that aim at changing the underlying structure, or institutions, of the nations economy are referred to as __________.
structural policies
"According to the results of economic research, a tax increase might lead to lower interest rates" is a statement of __________.
positive analysis
"We should increase the tax rate" is a statement of __________.
normative analysis
The major macroeconomic issues:
1)eceonomic growth and living standards
2)productivity
3)recessions and expansions
4)unemployment
5)inflation
6)economic interdependence among nations
Types of macroeconomic policies:
1)monetary policy
2)fiscal policy
3)structural policy