KEY TERMS

aggregation, p. 40

average labor productivity, p. 33

classical approach, p. 46

closed economy, p. 37

deflation, p. 36

economic model, p. 42

economic theory, p. 42

empirical analysis, p. 42

equilibrium, p. 46

fiscal policy, p. 38

inflation, p. 36

invisible hand, p. 45

Keynesian approach, p. 46

macroeconomics, p. 31

monetary policy, p. 38

normative analysis, p. 45

open economy, p. 37

positive analysis, p. 45

stagflation, p. 47

trade deficit, p. 38

trade surplus, p. 38

unemployment, p. 35

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