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8 Cards in this Set
- Front
- Back
Classical economics |
The idea that free markets can regulate themselves |
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Productive capacity |
The maximum output that an economy can produce without bug increases in inflation |
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Demand-side economics |
The idea that government spending and tax cuts help an economy by raising demand |
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Keynesian economics |
A form of demand-side economics that encourages government action to increase or decrease demand and output |
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Multiplier effect |
The idea that every one dollar of government spending creates more than one dollar in economic activity |
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Automatic stabilizer |
A government program that changes automatically depending on GDP and a person's income |
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Supply-side economicd |
A dchool.of economics that believes tax cuts can help an economy by raising supply |
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Council of Economic Advisers (CEA) |
A group of three respected economists that advise the president on economic policy |