Examlex
Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Corsica
Natural Rate
often refers to the natural rate of unemployment, where the economy is at equilibrium, taking into account the frictional and structural factors.
Potential GDP
The maximum possible level of output an economy can achieve when it is most efficiently utilizing its resources.
Unemployment
A situation where individuals who are able and willing to work cannot find jobs, measured as a percentage of the labor force.
Expansionary Fiscal Policy
Government policy aimed at stimulating economic growth by increasing government spending, reducing taxes, or both.
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