Term
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Definition
| The behavior of all households and firms together |
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Term
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Definition
| Prices that do not always adjust rapidly to maintain equality supplied and equality demanded |
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Term
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Definition
| The cycle of short-term ups and odwns in the economy |
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Term
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Definition
| The total quantity of goods and services produced in an economy in a given period |
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Term
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Definition
| A period during which aggregate output declines. Concentionally, a period in which aggregate output declines for two consecutive quarters. |
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Term
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Definition
| A prolonged and deep recession |
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Term
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Definition
| The period in the business cycle from a trough up to a peak during which output and emplyment grow. |
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Term
| Contraction, recession, or slump |
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Definition
| The period in the business cycle from a peak down to a trough during which output and employment fall. |
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Term
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Definition
| The percentage of the labor force that is unemployed. |
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Term
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Definition
| An increase in the overall price level. |
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Term
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Definition
| A period of very rapid increases in the overall price level. (rare) |
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Term
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Definition
| A drecease in the overall price level. |
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Term
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Definition
| A diagram showing the income recoeved and payments made by each sector of the economy. |
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Term
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Definition
| Cash payments made bby the governments to people who do not supply goods, sevices, or labor in exchange for these payments. They include Social Security Benefits, veterans' benefits, and welfare payments. |
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Term
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Definition
| Saving by households, it is called leakage because it removes circular flow from the system |
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Term
| Treasury bonds, notes, and bills |
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Definition
| Promissory notes issued by the federal governmnet when it borrows money. |
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Term
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Definition
| Promissory notes issued by firms when they borrow money. |
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Term
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Definition
| Financial instruments that give to the holder a share in the firm's ownership and therefore the right to share in the firm's profits. |
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Term
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Definition
| The portion of the firm's profits that the firm pays out each period to its shareholders |
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Term
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Definition
| Government policies concerning taxes and spending. |
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Term
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Definition
| The tools used by the Federal Reserve to control the short-term interest rate. |
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Term
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Definition
| The phrase use by Walter Heller to refer to the government's role in regulating inflation and unemployment. |
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Term
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Definition
| A situation of both high inflation and high unemployment |
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