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Unformatted text preview: date of a new job; the group of individuals in the labor force that are not employed Cyclical unemployment- arises from fluctuations in the business cycle Money- set of assets in the economy that people regularly use to buy goods and services from other people Monetary policy- the setting of the money supply by policy makers in the central bank Open market operations- primary way the FED changes the money supply Real variables- variables measured in physical units Depreciation- wear and tear on the economys stock of equipment and structures Recession- period of declining real GDP, falling incomes, and rising unemployment Natural rate of output Fiscal policy-making changes in taxes and government spending Multiplier effect Automatic stabilizers Phillips curve Natural-rate hypothesis Sacrifice ratio Rational expectations...
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This test prep was uploaded on 04/08/2008 for the course ECON 1002 taught by Professor Rissell during the Spring '08 term at Villanova.
- Spring '08