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18 Cards in this Set
- Front
- Back
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economics
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social science that is the study of how people make choices to satisfy their unlimited wants
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microeconomics
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Study of choices that individuals make, the way these choices interact in markets, and the influence of governments
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macroeconomics
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studies the behavior of the economy take as a whole. studies the performance of the national economy and the global economy
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opportunity cost
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the highest-valued alternative that we give up to something
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ceteris parbus
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other things being equal--all other relevant things remaining the same
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Great Depression
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a decade (1929-1939) of high unemployment and stagnant production throughout the world economy
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John Maynard Keynes
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author of The General Theory of Employment, Interest, Money
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Keynes' Theory
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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)
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Keynesian
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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
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Keynesian theory of the business cycle
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A theory that regards volatile expectations as the main source of economic fluctuations
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Recession
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a business cycle phase in which real GDP decreases for at least two successive quarters
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Business Cycle
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the periodic but irregular up-and-down movement in production
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Inflation
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a process in which the price level is rising and money is losing value
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Deflation
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a process in which the price level falls--a negative inflation
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Budget Deficit
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a government's budget balance that is negative--expenditures exceed tax revenues
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Budget surplus
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a government's budget balance that is positive--tax revenues exceed expenditures
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Balanced budget
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a government budget in which tax revenues and expenditures are equal
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federal budget 1990's
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real GDP was growing rapidly...recession in 1990-91....
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