D-E Flashcards
Deflation
Period of time where AD is falling
Demand-Pull inflation
Inflation caused by too much demand in the economy relative to supply
Depression
The bottom of the economic cycle where GDP starts to fall with significant increases in unemployment.
Derived Demand
Demand that arises because there is demand for another good.
Direct taxes
Taxes levied on the income earned by firms and individuals
Dumping
When an overseas firm sells large quantities of a product below the cost in the domestic market
Economic Growth
Increases in the level of output by a nation
Economy
System that attempts to solve the basic economic problem
Excise duty
Government taxes in certain goods that are sold in a country
Expansionary fiscal policy
Fiscal measures designed to stimulate demand in an economy
Fiscal deficit
Amount by which the government spending exceeds government revenue
Fiscal policy
Decisions about government spending, taxation and the levels of borrowing that affect AD in the economy
Fiscal surplus
Amount by which government revenue exceeds government spending
Free trade
Situation in which the goods coming into it out of an economy are not controlled or taxed
Frictional unemployment
When the workers are unemployed for a short period of time as they move from one job to another
