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Macroeconomics Ch.4
Definitions for "Principles of Macroeconomics 3rd Canadian Edition"
Question | Answer |
---|---|
Fallacy of Compostition | the mistake of falsely assuming that what is true a the level of a particular individual is true at a higher aggregate level |
Government Budget Surplus | when government revenues exceed expenditures (budget is positive) |
Structural Policy | government policies aimed at changing the underlying structure |
Government Budget Deficit | when government revenues fall short of expenditures (budget is negative) |
Government Budget Balance | the difference between government revenues and expenditures |
Fiscal Policy | decisions that determines the governments' budget |
Monetary Policy | central bank management of interest rates to achieve macroeconomic objectives |
Average Labour Productivity | output per employed worker |
Macroeconomic Policies | government actions designed to affect the performance of the economy as a whole |
Aggregation | adding up of individual economic variables to obtain economy-wide totals |