Chapter 2 Flashcards
1
Q
What does an expansion in the economy look like on a graph
A
An expansion is the period from trough to peak
2
Q
what does a Recession look like on a graph
A
The period from peak to trough
3
Q
What is tulip mania
A
When there is a large economic bubble
4
Q
what are externalities
A
The unintended consequences of something
ex. externality of pursing higher education is respect
5
Q
objectives of economic analysis
A
economic produced- growth of output
unemployment
6
Q
As ______ decreases _______ increases and vice vera
A
output, unemployment
7
Q
Secular stagnation
A
slow economic growth for long period of time
8
Q
Stagflation
A
economic growth and inflation over a short period of time
