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12 ECON Vocab 16

study material for economics vocab CH 16 - Ponder

TermDefinition
GDP gap difference between the actual GDP and the potential GDP that could be produced if all resources were fully employed
monetarism emphasis on the role of money and its: growth as a key to controlling inflation and unemployment
supply-side economics policies to stimulate output and reduce unemployment by increasing production rather than demand
Keynesian economics actions to lower unemployment by stimulating aggregate demand
automatic stabilizer triggers benefits automatically when changes in the economy lower income
stagflation period of stagnant growth combined with inflation
wage-price controls regulations making it illegal for businesses to give workers raises or to raise prices without the explicit permission of the government
unemployment insurance income provided for workers who lose their jobs through no fault of their own
fiscal policy federal government's attempt to stabilize the economy through taxing and government spending
misery (discomfort) index sum of monthly inflation
Laffer curve hypothetical relationship between federal tax rates and tax revenues
Created by: breckart2
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