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AD-AS ANALYSIS: An economic model relating the price level and real production that is used to analyze business cycles, gross domestic product, unemployment, inflation, stabilization policies, and related macroeconomic phenomena. The AS-AD model, inspired by the standard market model, captures the interaction between aggregate demand (the buyers) and short-run and long-run aggregate supply (the sellers).

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Lesson 12: Business Cycles | Unit 5: Policies Page: 24 of 26

Topic: Expansionary <=PAGE BACK | PAGE NEXT=>

Expansionary policies avoid or limit the problems of business cycle contractions.
  • Expansionary fiscal policy is increasing government spending or reducing taxes. More spending can offset the decline in investment, directly. Lower taxes leaves households with more income from consumption.
  • Expansionary monetary policy is increasing in the amount of money in circulation. More money means more spending.

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LABOR

The mental and physical human efforts used in the production of goods and services. This is one of four basic categories of resources, or factors of production. The other three are capital, land, and entrepreneurship.

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APLS

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Today, you are likely to spend a great deal of time searching the newspaper want ads looking to buy either several magazines on fashion design or a package of 3 by 5 index cards, the ones without lines. Be on the lookout for poorly written technical manuals.
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The 1909 Lincoln penny was the first U.S. coin with the likeness of a U.S. President.
"Think not of yourself as the architect of your career but as the sculptor. Expect to have to do a lot of hard hammering and chiseling and scraping and polishing. "

-- B. C. Forbes, founder, Forbes magazine

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