Term
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Definition
| problems such as unemployment are resolved without government intervention, through the working of the invisible hand |
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Term
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Definition
| economic slumps are caused by inadequate spending & they can be mitigated by government intervention |
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Term
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Definition
| uses changes in the quantity of money to alter interest rates & affect overall spending |
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Term
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Definition
| uses changes in government spending & taxes to affect overall spending |
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Term
| before the 1930's, economics tended to regard the economy as _____ |
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Definition
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Term
| after the Great Depression, _____ provided the rational for government intervention through monetary policy & fiscal policy to help a depressed economy |
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Definition
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Term
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Definition
| periods of economic downturn when output & employment are falling |
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Term
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Definition
| periods of economic upturn when output & employment are rising |
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Term
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Definition
| the short-run alternation between recessions & expansions |
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Term
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Definition
| the point at which the economy turns from expansion to recession |
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Term
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Definition
| the point at which the economy turns from recession to expansion |
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Term
| the _____, the short-run alternation between recessions & expansions, is a major concern of modern macroeconomists |
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Definition
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Term
| the point at which expansion shifts to recession is a _____ |
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Definition
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Term
| the point at which recession shifts to expansion is a _____ |
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Definition
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Term
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Definition
| the sustained upward trend in the economy's output over time |
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Term
| because the US economy has achieved _____, Americans live much better than they did a half-century or more ago |
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Definition
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Term
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Definition
| a rising overall level of prices |
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Term
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Definition
| a falling overall level of prices |
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Term
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Definition
| the overall level of prices changes slowly or not at all |
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Term
| because either _____ or _____ can cause problems for the economy, economists typically advocate maintaining price stability |
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Definition
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Term
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Definition
| an economy that trades goods & services with other countries |
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Term
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Definition
| the value of goods & services bought from foreigners is more than the value of goods & services sold to them |
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Term
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Definition
| the value of goods & services bought from foreigners is less than the value of the goods & services sold to them |
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Term
| comparative advantage can explain why an _____ exports some goods & services & imports others, but it can't explain why a country imports more than it exports or vice versa |
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Definition
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Term
| _____ & _____ are macroeconomic phenomena, determined by decisions about investment spending & savings |
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Definition
| trade deficits; trade surpluses |
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