Enhance Your Learning with Political Economy - Keynesian Economics Flash Cards for quick learning
The study of how economic theories and government policies influence the economy and society as a whole.
An economic theory developed by John Maynard Keynes, emphasizing the role of government intervention to stabilize the economy and promote economic growth.
Actions taken by the government to influence the economy, such as fiscal and monetary policies.
The use of government spending and taxation to influence the economy, with the aim of achieving economic stability and growth.
The use of central bank policies, such as interest rates and money supply, to control inflation, stabilize the economy, and promote economic growth.
The total demand for goods and services in an economy at a given time, influenced by factors such as consumer spending, investment, government spending, and net exports.
The total supply of goods and services in an economy at a given time, influenced by factors such as labor, capital, technology, and natural resources.
The idea that an initial increase in spending or investment can lead to a larger increase in national income and economic output.
The way in which income is divided among individuals or households in an economy, influenced by factors such as wages, taxes, and government policies.
The state of being without a job, often measured as a percentage of the labor force.
A sustained increase in the general price level of goods and services in an economy over time.
An increase in the production of goods and services in an economy over time, often measured as the percentage change in real GDP.
Various criticisms of Keynesian economics, including concerns about government intervention, inflation, and the effectiveness of fiscal and monetary policies.
The application of Keynesian economic principles in real-world economic policies and decision-making.
The historical events and economic conditions that influenced the development of Keynesian economics, such as the Great Depression.
A comparison of Keynesian economics with other economic theories, such as classical economics and supply-side economics.
The role of Keynesian economics in understanding and addressing the causes and consequences of the Great Depression in the 1930s.
An economic theory that focuses on stimulating aggregate demand to achieve economic growth and reduce unemployment.
An economic theory that emphasizes the importance of increasing the supply of goods and services to stimulate economic growth and improve overall economic performance.
A combination of stagnant economic growth and high inflation, which challenges traditional economic theories and policy approaches.
Government policies and programs that automatically adjust to stabilize the economy during economic downturns or expansions, such as unemployment benefits and progressive taxation.
A graphical representation of the inverse relationship between the unemployment rate and the inflation rate, suggesting a trade-off between the two variables.
The reduction in private sector spending or investment that occurs when the government increases its borrowing or spending.
A situation in which interest rates are very low and monetary policy becomes ineffective in stimulating economic growth and investment.
Government policies aimed at reducing budget deficits and public debt through spending cuts and tax increases, often associated with a focus on fiscal discipline and economic stability.
An extension of Keynesian economics that incorporates elements of neoclassical economics, emphasizing the role of expectations, rational behavior, and market imperfections.
A school of thought within Keynesian economics that focuses on microeconomic foundations, price rigidities, and the role of monetary policy in stabilizing the economy.
A heterodox school of economic thought that emphasizes the role of uncertainty, money, and power in understanding economic phenomena, departing from mainstream neoclassical economics.
Inflation caused by an increase in aggregate demand, often resulting from increased consumer spending or government spending.
Inflation caused by an increase in production costs, such as wages or raw material prices, leading to higher prices for goods and services.
A graphical representation of the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes government revenue.
A system in which the government plays a key role in promoting the economic and social well-being of its citizens through various social policies and programs.
Government policies or actions aimed at increasing aggregate demand and stimulating economic growth during periods of recession or economic downturns.
A situation in which all willing and able individuals who are actively seeking employment can find jobs, often associated with low unemployment rates.
A self-reinforcing cycle in which higher wages lead to higher prices, and higher prices lead to demands for higher wages, potentially fueling inflationary pressures.
A state in which supply and demand are balanced, resulting in stable prices and quantities in the market.
A significant decline in economic activity, often characterized by a contraction in GDP, high unemployment rates, and a decline in consumer spending and investment.
A severe and prolonged economic downturn, often characterized by a sharp decline in economic activity, high unemployment rates, and a significant contraction in GDP.
A period of economic growth and improvement following a recession or economic downturn, often marked by increasing GDP, declining unemployment rates, and rising consumer confidence.
A prolonged period of slow or no economic growth, often accompanied by high unemployment rates, low consumer spending, and limited investment.
A disparity in the distribution of income and wealth among individuals or households in an economy, often measured by indicators such as the Gini coefficient.
The ability of individuals or households to move up or down the income ladder over time, often influenced by factors such as education, skills, and economic opportunities.
The optimal allocation of resources in an economy to maximize the production of goods and services, often measured by indicators such as productivity and allocative efficiency.
The unintended consequences of economic activities on third parties, such as pollution, congestion, and public goods.
The ability of an economy to maintain long-term economic growth and development while preserving natural resources and minimizing negative environmental impacts.
The increasing interconnectedness and integration of national economies through trade, investment, and the flow of goods, services, and capital across borders.
Government policies or actions aimed at restricting or regulating international trade and protecting domestic industries from foreign competition.
The process of improving the economic well-being and quality of life for individuals and communities, often measured by indicators such as GDP per capita and human development index.
Government actions or interventions aimed at influencing the economy, such as fiscal and monetary policies, trade policies, and regulatory measures.
Statistics or data that provide insights into the overall health and performance of an economy, such as GDP, inflation rate, unemployment rate, and consumer confidence.
The process of predicting or estimating future economic trends and developments, often based on historical data, statistical models, and expert analysis.
The systematic study and evaluation of economic phenomena, often using economic theories, models, and empirical data to understand and explain economic behavior and outcomes.
Rewards or penalties that influence individuals, businesses, or governments to make certain economic choices or decisions, often based on self-interest and rational behavior.
A period of economic decline or contraction, often characterized by a decline in GDP, rising unemployment rates, and reduced consumer spending and investment.
A period of rapid economic growth and expansion, often characterized by increasing GDP, low unemployment rates, and high consumer spending and investment.