Term
| efficient market hypothesis |
|
Definition
| financial markets are informationally efficient-they quickly absorb all relevant information about securities into their prices |
|
|
Term
|
Definition
| A period of high unemployment and business failures; a severe, long lasting downturn in a business cycle |
|
|
Term
|
Definition
| an economic condition characterized by price increases linked to a decrease in the value of the currency |
|
|
Term
|
Definition
| the joint occurrence of slow growth, unemployment, and inflation |
|
|
Term
|
Definition
| the total income that consumers, businesses, and government wish to spend for goods and services |
|
|
Term
|
Definition
| the total value of goods and services that can be produced when the economy works at full capacity |
|
|
Term
|
Definition
| the total value of the goods and services produced by a country during a year |
|
|
Term
|
Definition
| an economic theory stating that the government can stabilize the economy-that is, can smooth business cycles-by controlling the level of aggregate demand can be controlled by means of fiscal monetary policies |
|
|
Term
|
Definition
| economic policies that involve government spending and taxing |
|
|
Term
|
Definition
| economic policies that involve control of, and changes in, the supply of money |
|
|
Term
|
Definition
| the Keynesian technique of spending beyond government income to combat an economic slump. Its purpose is to inject extra money into the economy to stimulate aggregate demand |
|
|
Term
| Council of Economic Advisers |
|
Definition
| a group that works within the executive branch to provide advice on maintaining a stable economy |
|
|
Term
|
Definition
| those who argue that government can effectively control the performance of an economy mainly by controlling the supply of money |
|
|
Term
|
Definition
| the system of banks that acts as the central bank of the United States and controls major monetary policies |
|
|
