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10 Cards in this Set
- Front
- Back
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Business Cycle |
Alternating periods of economic expansion and economic recession. |
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Capital |
Manufactured goods that are used to produce other goods and services. |
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Crowding out |
A decline in private expenditures as a result of an increase in government purchases. |
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Financial intermediaries |
Firms such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers. |
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Financial Markets |
Markets where financial securities, such as stocks and bonds, are bought and sold. |
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Financial system |
Markets where financial markets and financial intermediaries through which firms acquire funds from households. |
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Labor productivity |
The quantity of goods and services that can be produced by one worker or by one hour of work. |
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Long-run economic growth |
The process by which rising productivity increases the average standard of living. |
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Market for loanable funds |
The interaction of borrowers and lenders that determines the market interest rate and the quality of loanable funds exchanged. |
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Potential GDP |
The level of real GDP attained when all firms are producing at capacity. |
