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Contractionary Fiscal Policy
Economic measures employed by a government to reduce its expenditures or increase taxes with the aim of slowing down an overheated economy.
Potential Output
The highest level of real gross domestic product (GDP) that can be sustained over the long term without increasing inflation, reflecting the maximum productive capacity of an economy.
Short-Run Aggregate Supply
The total production of goods and services in an economy at different price levels in the short-term, considering wages and resource prices as sticky.
Short-Run Aggregate Supply
The total production of goods and services in an economy at different price levels over a short period, during which some production costs are fixed.
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