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.
Selfregulating economy Keynesian economics Monetary policy Fiscal policy Recessions Expansions Business cycle Businesscycle peak Businesscycle trough LongRun Economic Growth Inflation Deflation Price stability Open economy Trade deficit Trade surplus | 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 rise in the overall level of prices a period of economic downturn when output and unemployment are falling; also referred to as a contraction changes in government spending and taxes designed to affect overall spending when the value of goods and services bought from foreigners is less than the value of the goods and services sold to them the point in time at which the economy shifts from expansion to recession. a theory that states that economic slumps are caused by inadequate spending and they can be mitigated by government intervention when the value of the goods and services bought from foreigners is more than the value of the goods and services sold to consumers abroad the shortrun alternation between economic recessions and expansions changes in the quantity of money in circulation designed to alter interest rates and affect the level of overall spending an economy in which problems such as unemployment are resolved without government intervention, through the working of the invisible hand a fall in the overall level of prices an economy that trades goods and services with other countries the point in time at which the economy shifts from recession to expansion. the sustained upward trend in the economy’s output over time a situation in which the overall level of prices is changing slowly or not at all |
Self-regulating economy, p. 309
Keynesian economics, p. 309
Monetary policy, p. 310
Fiscal policy, p. 310
Recession, p. 312
Expansion, p. 312
Business cycle, p. 312
Business-cycle peak, p. 312
Business-cycle trough, p. 312
Long-run economic growth, p. 316
Inflation, p. 320
Deflation, p. 320
Price stability, p. 320
Open economy, p. 321
Trade deficit, p. 321
Trade surplus, p. 321