Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Business-cycle trough Deflation Inflation Trade surplus Recession Expansion Fiscal policy Price stability Business cycle Keynesian economics Self-regulating economy Monetary policy Trade deficit Business-cycle peak Long-run economic growth Open economy | a rise in the overall level of prices. a fall in the overall level of prices. a school of thought emerging out of the works of John Maynard Keynes; according to Keynesian economics, a depressed economy is the result of inadequate spending and government intervention can help a depressed economy through monetary policy and fiscal policy. Changes in aggregate demand affect aggregate output, employment, and prices. Changes in business confidence cause the business cycle. an economy in which problems such as unemployment are resolved without government intervention, through the working of the invisible hand, and in which government attempts to improve the economy’s performance would be ineffective at best, and would probably make things worse. a situation in which the overall cost of living is changing slowly or not at all. an economy that trades goods and services with other countries. when the value of goods and services bought from other countries is less than the value of the goods and services sold to them. when the value of the goods and services bought from other countries is more than the value of the goods and services sold to consumers abroad. the point in time at which the economy shifts from expansion to recession. changes in government spending and taxes designed to affect overall spending. the sustained rise in the quantity of goods and services the economy produces. the point in time at which the economy shifts from recession to expansion. changes in the quantity of money in circulation designed to alter interest rates and affect the level of overall spending. the short-run alternation between economic downturns, known as recessions, and economic upturns, known as expansions. period of economic upturn in which output and employment are rising; most economic numbers are following their normal upward trend; also referred to as a recovery. a downturn in the economy when output and employment are falling. |