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Definition
| The process by which rising productivity increases the average standard of living. |
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Definition
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Term
| Determinants of Long Term Growth: |
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Definition
| Capital, Labor, and Technological factors |
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Term
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Definition
| The quantity of goods and services that can be produced by one worker or by one hour of work |
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Term
| What Determines the Rate of Long-Run Growth? |
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Definition
| Increases in Capital per Hour Worked |
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Term
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Definition
| The resulting product of investment used to produce other goods and services. May take the form of factories, plants, equipment, or other elements allowing for production. |
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Term
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Definition
| The level of GDP attained when all labor and capital is fully deployed, such that all firms are producing at capacity. |
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Definition
| The system of financial markets and financial intermediaries through which firms acquire funds from households. |
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Definition
| Markets where financial securities, such as stocks and bonds, are bought and sold. |
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Definition
| 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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| Market for loanable funds |
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Definition
| The interaction of borrowers and lenders that determines the market interest rate and the quantity of loanable funds exchanged. |
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Term
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Definition
| A decline in private expenditures as a result of an increase in government purchases |
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Term
| Four Business Cycle Phases |
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Definition
Expansion
Cycle Peak
Recession
Cycle Trough |
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Term
| The economy is formally pronounced in recession following what? |
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Definition
| Two consecutive qtrs of negative GDP |
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Term
| During the expansion phase... |
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Definition
| economic activity increases capital investment and demand for funds. |
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