14. Macroeconomic Policies Flashcards
1
Q
Total factor productivity
A
The overall productivity of inputs used to a firm in producing a particular level of output.
2
Q
Boom/bust policy
A
The government using macroeconomic tools to stimulate and then contract the economy
3
Q
Deflation.
A
A situation where average prices persistently fall over 4 consecutive quarters.
4
Q
Credit crunch.
A
Where borrowing becomes more expensive or unavailable.
