macro

    Master this deck with 19 terms through effective study methods.

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    What are the three primary concerns of macroeconomics?

    Output growth, unemployment, inflation and deflation.

    What defines macroeconomics?

    Focuses on the economy as a whole and aggregate measures.

    What is the business cycle?

    Natural fluctuations in economic activity measured by GDP.

    How does expansion differ from contraction?

    Expansion involves rising employment and production; contraction involves decline.

    What is the unemployment rate?

    Percentage of the labor force that is unemployed.

    What happens during a recession?

    Characterized by falling GDP and rising unemployment.

    What is inflation?

    An increase in the overall price level.

    What distinguishes hyperinflation from regular inflation?

    Hyperinflation involves very rapid increases in prices.

    What is aggregate output?

    Total quantity of goods and services produced in an economy.

    What are transfer payments?

    Cash payments from the government without exchange for goods or services.

    What is the role of fiscal policy?

    Government spending and taxation to influence the economy.

    What is monetary policy?

    Regulation of money supply and interest rates by central banks.

    What is a depression?

    A prolonged and deep recession with significant economic decline.

    What is the circular flow diagram?

    Illustrates the flows of goods, services, and payments in the economy.

    What are the four components of the macroeconomy?

    Households, firms, government, and the rest of the world.

    What is the significance of sticky prices?

    They do not adjust quickly to changes in supply and demand.

    What is stagflation?

    A situation of high inflation and high unemployment occurring simultaneously.

    What is the Great Depression?

    A severe global economic downturn from 1929 to 1939.

    What is fine-tuning in macroeconomics?

    Government's role in regulating inflation and unemployment.