A period of macroeconomic expansion
A preiod of economic growth as measured by a rise in GDP
A steady, long term increase in real GDP
The hight of economic expansion, when real GdP stops rising
A period of economic decline marked by falling real GDP
The lowest point in an economic contraction, when real GDP stops falling
A prolonged economic contraction
A recession that is especially long and severe
A decline in real GDP combined with a rise in the price level
Key economic variables that economists use to predict a new phase of a business cycle
What phase of a business cycle can lead an economy into recession?
a contrction because a recession is a prolonged contarction and to determine when in recession real GDP starts to fall. Contraction is a period of economic decline marked by falling real GDP
How can interest rates push a business cycle into a contraction?
High interest rates can promote saving, which in turn can cause a downturn in demand, causing surplus products on the market.
Why is the stock market considered to be a leading indicator of economic change?
a leading indicator is a set of key variables that economists use to predict phase of a business cycle, and a stock market, typically, turns sharply downward before a recession begins.
How did the Great Depression affect economists beliefs about the macroeconomy
The Great Depression affected economists’ beliefs about the macroeconomy because it made them realize that the U.S. economy actually depends on the economies of countries around the world. Prior to this, the thought was that our economy was solely dependent on actions within the U.S.
A general increase in prices
The ability to purchase goods and services
A measurement that shows how the average price of standard group of goods changes over time
Consumer price index
CPI- a price index determined by measuring the price of a standard group of goods meant to represent the “market basket” of a typical urban consumer
A representative collection of goods and services
The percentage rate change in price level over time
The rate of inflation excluding the effects of food and energy prices
Inflation THAT IS out of control
Theory that too much money in the economy causes inflation
Demand- Pull theory
Theory that inflation occurs when demand for goods and services exceeds existing supplies
Theory that inflation occurs when producers raise prices in order to meet increases costs
The process by which rising wages cause higher and higher prices, and higher prices cause higher wages
Income that does not increase even when prices go up
A sustained drop in the price level
The homeless towns created in hoovers presidency
Need essay sample on "12.2/13.2"? We will write a custom essay sample specifically for you for only $ 13.90/page