Term
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Definition
| Alternating periods of economic expansion and economic recession. |
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Term
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Definition
| The process by which rising productivity increases the average standard of living. |
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Term
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Definition
| The quantity of goods and services that can be produced by one worker or by one hour of work. |
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Term
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Definition
| Manufactured goods that are used to produce other goods and services. |
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Term
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Definition
| The level of real GDP attained when all firms are producing at capacity. |
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Term
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Definition
| The system of financial markets and financial intermediaries through which firms acquire funds from households. |
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Term
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Definition
| Markets where financial securities, such as stocks and bonds, are bought and sold. |
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Term
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Definition
| Firms,such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers. |
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Term
| Market for Loanable Funds |
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Definition
| The interaction of borrowers and lenders that determines the market interest rate and the quantity of loanable funds exchanged. |
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Term
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Definition
| A decline in private expenditures as a result of an increase in government purchases. |
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