Modules 30 - 33

An estimate of what the budget balance would be if real GDP were exactly equal to potential output.

• debt-GDP ratio

• cyclically adjusted budget balance

• government debt

• consumber debt

The accumulation of past budget deficits, minus past budget surpluses.

• consumer debt

• debt-GDP ratio

• government debt

• cyclically adjusted budget balance

The Federal Reserve's desired level for the federal funds rate; the Federal Reserve can achieve this target through open market operations.

• expansionary monetary policy

• target federal funds rate

• government debt

• money demand curve

The government's debt as a percentage of GDP.

• cyclically adjusted budget balance

• debt-GDP ratio

• government debt

• money supply curve

Monetary policy that increases aggregate demand.

• Taylor rule for monetary policy

• inflationary targeting

• expansionary monetary policy

• contractionary monetary policy

Monetary policy that reduces aggregate demand.

• government debt

• expansionary monetary policy

• contractionary monetary policy

• Taylor rule for monetary policy

Rule for setting the federal funds rate that takes into account both the inflation rate and the output gap.

• expansionary monetary policy

• Taylor rule for monetary policy

• contractionary monetary policy

• inflationary targeting

When the central bank sets an explicit target for the inflation rate and sets monetary policy in order to hit that target.

• expansionary monetary policy

• inflationary targeting

• contractionary monetary policy

• money supply curve

The concept that changes in the money supply have no real effects on the economy.

• money demand curve

• monetary neutrality

• Expansionary monetary policy

• money supply curve

A reduction in the value of money held by the public caused by inflation.

• inflation rate

• inflation tax

• unemployment tax

• demand inflation curve