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