Chapter 13 Flashcards
(5 cards)
1
Q
What are gov purchases?
A
purchases of goods and srvcs produced by firms, as well as direct production by gov
2
Q
What is a transfer pmt?
A
provision of aid or money to an individual who is not explicitly required to provide anything in exchange
3
Q
What is crowding out?
A
tendency for an expansionary fiscal policy to reduce other components of AD
4
Q
What is crowding in?
A
tendency for a contractionary fiscal policy to increase other components of AD
5
Q
What is supply side economics?
A
school of thought that promotes the use of fiscal policy to stimulate long-run AS
