Economic Key Terms (Relevant throughout 1951-64) Flashcards
What are supply side economics
Belief that economic growth occurs with less business regulation and low taxes
What are Demand side economics
High product demand means more spending so more money for the economy
What is balance of payment/trade
Balance of all money coming in to the country vs out of the country
What is a deficit
A loss of something
What is a surplus?
A gain of something
What is a balance of payment deficit
The country is paying for more important than selling exports
Overheating economy
An economy growing well but inflation also growing quickly
What is inflation
When currency value drops and goods prices increase
What is Deflation
When there’s a price drop of goods.
Stop-go
A term to describe economic management policies.
Stop phase of stop-go
Reduce economic growth
Go phase of stop-go
Increase economic growth
