The economy can be "fine tuned" through government taxing and spending decisions.
Deflation hurts borrowers and ____ lenders.
At this point business activity has reached a temporary maximum.
Q=
V=
The 3-5% rule is ok. It should be predetermined to stabilize expectations
Refers to the alternating rises and declines in the level of economic activity.
In the ____ of a recession or depression output and employment "bottom out" at their lowest level.
Aggregate supply is more vertical.
Down
When the output gap is negative, the actual unemployment rate is ____ the natural rate.
This gives the economy a high degree of macroeconomic stability.
It is ineffective because of people's reaction. "Fool me once - shame on you. Fool me twice-- shame on me."
The FED sells bonds on the open market. This policy is designed to lower AD in order to fight ___.
Vertical at the non-accelerating-inflation rate of unemployment (NAIRU)
M=
AD is normally stable, but if it should decline from AD1 to AD2 the PL will quickly fall from P1 to P2 and restore full employment.
Aggregate supply is more horizontal.
The government has a budget deficit if its total revenues are ___ than its total expenditures.
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It prints on two pages.
Big puzzles won’t always print on one page — the clues and grid are the smallest we could make them while keeping them readable for everyone.
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