macro Definitions

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policy mix

Back

is a combination of monetary and fiscal policy

example: expansionary fiscal policy + expansionary monetary policy

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V-recession

Back

is a downturn followed by a quick recovery

lasting 1-2 year

Front

U-recession

Back

is a downturn followed by a slow recovery

lasting 3-5 years

Front

L-recession

Back

is downturn followed by a very slow recovery

lasting 8-10 years

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Underemployment

Back

is the waste due to the misuse of human resources.

example: putting a hairdresser to fix a car instead of cutting hair.

Front

economic resources

Back

land - Natural Resources

labor - Human Resources

capital - Produced Resources

Front

Consumer price index

(CPI)

Back

is a measurement of inflation. By pricing a basket of consumer goods purchased by urban consumers.

example: $100 -> $103 -> Inflation up by 3%

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Core Inflation

Back

is the measure of inflation based on price changes on goods OTHER then food and energy.

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Public good

Back

is a good in which one person's consumption of it, does not prevent another person consumption of the same good.

example: like a street light

Front

Expansionary Fiscal Policy

Back

is when the president of congress either cuts income taxes and/or increases government spending to simulate output, employment and prices.