The Limits of Markets (HSC SSCE Economics): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Type of market failure affecting entire economy
Type of market failure affecting entire economy
Market instability
Business cycle
Business cycle
Fluctuations in economic growth level
Two phases of business cycle
Two phases of business cycle
Boom periods and bust periods (recessions)
Cause of inflation during boom periods
Cause of inflation during boom periods
Excess demand for goods and services
Recession
Recession
Severe downturn in economic activity
Another name for economic stabilisation policies
Another name for economic stabilisation policies
Macroeconomic policies
Fiscal policy
Fiscal policy
Government decisions about spending and taxation
Monetary policy
Monetary policy
Decisions about interest rates and money supply
Countercyclical policy
Countercyclical policy
Applying opposite force to economy's direction
Government actions during recession
Government actions during recession
Increase spending, cut taxes, lower interest rates