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Increases per capita real GDP measured by it's rate of change per year.
A government protection that gives the inventor the exclusive right to
make, use, or sell an invention for a limited period of time (currently,
Transforming an invention into something that is useful to humans.
The time difference between recognizing an economic problem and
implementing a policy to solve it. The action time lag is quite long for
fiscal policy, which requires congressional approval.
Action Time Lag
Special provisions of certain federal programs that cause changes in
desired aggregate expenditures without the action of Congress and the
President. Examples: federal progressive tax system, and unemployment
Automatic (built-in) Stabilizers
A situation in which the government's spending is exactly equal to the
total taxes and other revenues it collects during a given period of
The time that elapses between the implementation of a policy and the results of that policy.
Effect time Lag
Guaranteed benefits under a government program such as Social Security, Medicare, or Medicaid.
The discretionary changing of government expenditures or taxes to
achieve national economic goals, such as high employment with price
An excess of government spending over government revenues during a given period of time.
Government Budget Deficit
An excess of government revenues over government spending during a given period of time.
Government Budget Surplus
Government spending that changes automatically without action by congress
The total value of all outstanding federal government securities.
The time required to gather information about the current state of an economy.
The suggestion that creating incentives for individuals and firms to
increase productivity will cause the aggregate supply curve to shift
Tendency of expansionary fiscal policy to cause a decrease in planned
investment or planned consumption in the private sector. *this decrease
normally results from the rise of interest rates*