other questions Flashcards
john Maynard Keynes
- wrote the general theory of employment, interest and money
- he focused on the short term in attempting to solve the Great Depression.
in 1931 during the great depression, total production in the united kingdom fell by
5%
during the great depression
at one time the united kingdom had an unemployment rate of 15%
what is an example of LT economic policy issues
inflation and slow economic growth
potential GDP
the value of production with fully employed resources
what does GDP NOT do
measure changes in output and prices
potential GDP is
the value of production when all the nation’s labour, land, capital, and entrepreneurial ability are fully employed.
A trough is the ________ turning point of a business cycle when ________ begins.
lower; an expansion
comparing to the inflation rates in Japan and the United States with those of the European Union since 1973, we see that the
experiences have been similar with generally declining rates.
Since 1855, each year in the United Kingdom the price level has generally
risen
A recession is a period with a
negative growth rate in real GDP that lasts two quarters
In 1931, during the Great Depression, total production in the United Kingdom fell by ________ per cent and in 1932 the unemployment rate peaked at ________ per cent.
5; 15
In a period of rapid, unexpected inflation, resources can be lost
when firms use resources to forecast inflation.
The growth rate of GDP per person since the 1960s has
slowed, especially during the 1970s, and has resulted in losses estimated by the Lucas wedge.
The circular flow model shows that consumers goods and services produced by businesses are sold in the…
goods market
