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Unformatted text preview: economy. Supply-side Policy: Govt policies that focus on stimulating aggregate supply instead of aggregate demand. Circular Flow (pg. 102): Transfer Payments: Cash payments made by the Govt to ppl who do not supply goods, services, or labor in exchange for those payments. Social Security benefits, veterans benefits, and welfare payments The Three market Arenas:-Goods-and services market-Labor market-Money market Aggregate Demand: the total demand for goods and services in an economy. Aggregate Supply: The total supply of goods and services in an economy. Expansion or Boom: The period in the business cycle from a trough to a peak, during which output and employment rise. Contraction, recession, or slump: The period in the business cycle from a peak down to a trough, during which output and employment fall....
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This note was uploaded on 03/06/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).
- Spring '05