Microeconomics Ch 35

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  1. A curve that shows the short-run trade-off between inflation and unemployment
    Phillip's curve
  2. The claim that unemployment enventually returns to its normal, or natural, rate, regardless of the rate of inflation
    Natural-rate hypothesis
  3. An event that directly alters firms' costs and prices, shifting the economy's aggregate-supply curve and thus the Phillips curve
    Supply shock
  4. The number of percent age ponts of annual output lost in the process of reducing inflation by 1 percentage point
    Sacrifice ratio
  5. The thoery that people optimally use all the information they have, including information about government policies, when forecasting the future
    Rational expectations
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fillup
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150946
Card Set:
Microeconomics Ch 35
Updated:
2012-04-29 20:11:18
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Microeconomics 35
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Microeconomics Ch 35
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