Terms : Hide Images
| 9649126968 | short run | a period in which nominal wages (and other input prices) are unresponsive to changes in the price level | 0 | |
| 9649126969 | long run | a period in which nominal wages are fully responsive to changes in the price level | 1 | |
| 9649126972 | Phillips Curve | the inverse relationship between the rate of inflation and unemployment | 2 | |
| 9649126973 | stagflation | higher rates of both inflation and unemployment | 3 | |
| 9649126974 | aggregate supply shocks | either an inflation shock or a shock to a country's potential national outpu | 4 | |
| 9649126975 | disinflation | reductions in the inflation rate from year to year | 5 | |
| 9649126976 | supply-side economics | views aggregate supply as active rather than passive in explaining changes in the price level and unemployment | 6 | |
| 9649126977 | Laffer Curve | suggests that it is possible to lower tax rates and increase tax revenues, thus avoiding a budget deficit because the policies will result in less tax evasion and avoidance | 7 | |
| 9649136063 | Long-run vertical Phillips Curve | The Phillips Curve after all nominal wages have adjusted to changes in the rate of inflation; a line emanating straight upward at the economy's natural rate of unemployment | 8 |
