Terms : Hide Images
| 9478813368 | Inflationary Gap | An economy is producing more than their potential output at full employment | 0 | |
| 9478815412 | Recessionary Gap | When aggregate output is below potential output | 1 | |
| 9478820128 | Crowding Out Effect | The loss of funds for private investment due to government borrowing | 2 | |
| 9478821337 | Budget Deficit | When a government spends more than it collects in tax revenues in a given year. | 3 | |
| 9478822346 | Government Debt | The sum of all past budget deficits and surpluses | 4 | |
| 9478823910 | Debt-GDP Ratio | The government's debt as a percentage of GDP | 5 | |
| 9478825940 | Implicit Liabilities | Spending promises that government has made that are essentially a form of debt | 6 | |
| 9478834284 | Federal Funds Rate | Interest rate banks charge each other for loans | 7 | |
| 9478836041 | Expansionary Policy | A stabilization policy designed to increase real GDP. | 8 | |
| 9478836950 | Contractionary Policy | A stabilization policy designed to reduce real GDP. | 9 | |
| 9478838783 | Hyperinflation | A very high rate of inflation | 10 | |
| 9478838790 | Stagflation | A period of falling output and rising prices | 11 | |
| 9478841277 | Cost-Push Inflation | A sustained rise in the price level caused by a leftward shift of the aggregate supply curve | 12 | |
| 9478842602 | Demand-Pull Inflation | A sustained rise in the price level caused by a rightward shift of the aggregate demand curve | 13 | |
| 9478844948 | Phillips Curve | A curve showing the relationship between the inflation rate and the unemployment rate. | 14 | |
| 9478847589 | Monetarism | Asserts that GDP will grow steadily if the money supply grows steadily | 15 | |
| 9478860534 | Velocity of Money | Rate at which money changes hands | 16 | |
| 9478864441 | Classical Economics | The theoretical idea and approach that markets can fix themselves and "solve" economic problems | 17 | |
| 9478871563 | Keynesianism | Belief that an economy doesn't always operate at full employment and needs governmental action | 18 | |
| 9478915132 | Monetary Neutrality | Changes in the money supply have no real effects on the economy in the long run | 19 | |
| 9538411730 | Rational Expectations Model | The idea that people understand government policy affects inflation so they seek adjusted wages | 20 | |
| 9538432075 | Adaptive Expectations Model | The idea that people only use prior experience to assume what future inflation will be | 21 |
