Thẻ ghi nhớ: Unit 23. THE BUSINESS CYCLE | Quizlet

Downturn

a decline in economic activity

Upturn

an increase in economic activity

Expectations

beliefs of what will happen in the future

Consumption

purchasing and using goods and services

Balance of payments

the difference between the funds a country receives and those it pays for all international transaction

Gross domestic product (GDP)

the total market value of all the goods and services produced in a country during a given period

Demand

the willingness and ability of consumers to purchase goods and services

Supply

the willingness and ability of businesses to offer goods and services for sale

Save

to put money aside to spend in the future

Commodity

a substance or product that can be traded, bought, or sold

Equilibrium

a state of balance, for example when supply is the same as demand

Deficit

an amount of money that is smaller than is needed (ex: when spending exceed revenues)

Surplus

an excess: a quantity that is larger than is needed

Fiscal policy

government actions concerning taxation and public expenditure

Monetary policy

government or central bank actions concerning the rate of growth of the money in circulation

Money supply

the total amount of money available in an economy at a particular time

Keynesianism

the economic theory that government monetary and fiscal policy should stimulate business activity and increase employment in a recession

Countercyclical policies

______are aimed at helping the economy when it is experiencing difficulties

Inflation

a general, continuous increase in prices