AP Macro Economics Flashcards

Front

GDP

Back

Gross Domestic Product; total value of goods/services produced in a country

Front

Inflation

Back

General increase in prices; decrease in purchasing power

Front

Fiscal Policy

Back

Government spending and taxation to influence the economy

Front

Monetary Policy

Back

Central bank actions to control money supply and interest rates

Front

Aggregate Demand

Back

Total demand for goods/services in an economy at a given time

Front

Phillips Curve

Back

Inverse relationship between inflation and unemployment

Front

Supply-Side Economics

Back

Economic growth through lower taxes and deregulation

Front

Open Market Operations

Back

Buying/selling government securities to influence money supply

Front

Real Interest Rate

Back

Nominal interest rate adjusted for inflation

Front

Quantity Theory of Money

Back

MV = PQ; relationship between money supply and price level