12 Flashcards
1
Q
economoic fluctuations
A
short run changes in the growth rate of real gdp
2
Q
economic expansion
A
between recessions
3
Q
economic fluctuations have three key properties
A
co movement of mamy aggregate macroeconomic variables
limited predictibility of turning points
persistence in the rate of economic growth
4
Q
depression
A
prolonged recession with 20% unemployment
5
Q
animal spirits
A
psychological factors thatvlead to changes in the mood of consumers and businesses
6
Q
multiplyers
A
economic mechanism that cause an initial shock to be amplified by follow on effects, or self reinforcing feedback
7
Q
aggregate demand
A
economys overall demand for goods and services that a firm produces
