Studied by 3 people
Rational expectations
theory that people learn to anticipate government policies that influence the economy, making the policies ineffective.
Phillips curve
shows inverse relationship between inflation rate and unemployment.
National debt
total amount of money that the federal government owes.
Deflation
sustained decrease overall price level.
Budget deficit
federal government spending- tax collections.
Monetary inflation
when prices increase due to oversupply of currency.
Inflation
sustained increase to overall price level.
Monetary inflation
when prices increase due to oversupply of currency
Phillips curve
shows inverse relationship between inflation rate and unemployment
Rational expectations
theory that people learn to anticipate government policies that influence the economy, making the policies ineffective
Inflation
sustained increase to overall price level
Deflation
sustained decrease overall price level
National debt
total amount of money that the federal government owes
Ricardian Equivalency theory
deficit financing no different from tax financing
Crowding out
decrease in real investment due to higher interest rates from government purchases
Note 
Flashcard (32)