Term
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Definition
| a period in which nominal wages (and other input prices) do not respond to price-level changes. |
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Term
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Definition
| the period in which nominal wages are fully responsive to previous changes in the price level. |
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Term
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Definition
| a curve that suggests an inverse relationship between the rate of inflation and the rate of unemployment. |
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Term
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Definition
| Inflation accompanied by stagnation in the rate of growth of output and an increase in unemployment in the economy; simultaneous increases in the inflation rate and the unemployment rate. |
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Term
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Definition
| Sudden, large changes in resource costs that shift an economy's aggregate supply curve. |
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Term
| Long-run vertical Phillips Curve |
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Definition
| 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. |
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Term
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Definition
| A reduction in the rate of inflation |
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Term
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Definition
| A view of macroeconomics that emphasizes the role of costs and aggregate supply in explaining inflation, unemployment, and economic growth |
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Term
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Definition
| A curve relating to government tax rates and tax revenues and on which particular tax rate (between zero and 100 percent) maximizes tax revenues. |
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