Examlex
What is the OECD and how has it impacted higher education?
Self-correcting Economy
An economy that possesses mechanisms to automatically adjust itself to balance out recessions or inflations without external intervention.
Recessionary Gap
The difference between the actual output of an economy and its potential output if all resources were fully employed, indicating underperformance.
Expansionary Gap
A situation in an economy where total spending exceeds the production capacity, leading to inflationary pressures and a rise in output.
Effectiveness Lag
The time needed for changes in monetary or fiscal policy to affect the economy
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