Term
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Definition
| examines individual industries and the behavior of individual decision-making units, firms, and households |
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Term
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Definition
| deals with economy as a whole, total national income, aggregates consumption, overall level of prices and individual prices |
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Term
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Definition
| the behavior of all households and firms together |
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Term
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Definition
| prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded |
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Term
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Definition
| the cycle of short term ups and down in the economy |
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Term
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Definition
| the total quantity of goods and services produced in an economy in a given period |
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Term
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Definition
| a period during which aggregate output declines, usually for two consecutive quarters |
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Term
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Definition
| prolonged period of deep recession |
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Term
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Definition
| period in the business cycle from a trough to a peak during which output and employment grow |
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Term
| recession (contraction, or slump) |
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Definition
| the period in the business cycle from a peak down to a trough where output and employment fall |
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Term
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Definition
| the percentage of the labor force that is unemployed |
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Term
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Definition
| an increase in the overall price level |
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Term
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Definition
| a period of very rapid increases in overall price level |
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Term
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Definition
| decrease in overall price level |
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Term
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Definition
| a diagram showing the income received and payments made by each sector of the economy |
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Term
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Definition
| cash payments made by the governement to people who do not supply goods, services, or labor in exchange for these payments (Social Security, veterans, welfare) |
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Term
| treasury bonds, notes, and bills |
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Definition
| promissory notes issued by the federal government when it borrows money |
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Term
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Definition
| promissory notes issued by firms when they borrow money |
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Term
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Definition
| financial instruments that give to the holder a share in the firm's ownership and therefore the right to share in the firm's profits |
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Term
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Definition
| the portion of a firm's profits that the firm pays out each period to its shareholders |
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Term
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Definition
| government policies concerning taxes and spending |
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Term
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Definition
| the tools used by the federal reserve to control the quantity of money, which in turn affects interest rates |
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Term
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Definition
| period of severe economic contraction and high unemployment |
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Term
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Definition
| term used to refer to the governemnt's role in regulating inflation and umemployment |
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Term
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Definition
| a situation of both high inflation and high unemployment |
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