Economic Models and Theories

These flashcards cover key concepts related to economic theories and models discussed in the lecture.

Nordic Model

A social/economic model of Nordic nations that combines a mixed economy with extensive universal social programs, aiming for full employment and wealth distribution.

Mixed Economy

An economic system that incorporates both private and government policies, balancing capitalism and socialism.

Glass Steagall Act

A 1933 legislation that separated commercial banks from investment banks to stabilize the banking industry and prevent bank runs.

Trickle-Down Economics

An economic theory advocating tax cuts for businesses and the wealthy to stimulate investment and economic growth that would benefit everyone.

Thatcherism

An economic and political approach associated with Margaret Thatcher, focused on monetary control, union busting, and privatization.

Reaganomics

Economic policies under Ronald Reagan characterized by tax cuts for businesses, deregulation, and reduced social spending.

The Great Recession

A severe worldwide economic crisis that began in 2007-2008, triggered by the collapse of the housing market and financial system.

Progressive Taxation

A tax strategy where the tax rate increases as the taxable amount increases, aimed at promoting economic equality.

Subprime Mortgages

High-risk mortgages offered to borrowers with low credit ratings, often leading to defaults and financial crises.

Neo-Conservatism

A political ideology that promotes free-market capitalism, a strong national defense, and a reduction in government spending on social programs.