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15 Cards in this Set
- Front
- Back
Accelerator effect |
The relation between change in new investment and the rate of change oF national income |
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Aggregate demand |
Total spending in an economy. Known by AD=C+I+G+(X-M) |
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Balance of payments |
Exports minus imports of visible and invisible goods and services. |
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Balance of trade |
Visible exports minus visible imports |
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balanced budget |
where government receipts equal government spending in a financial year |
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broad money |
money that is held in banks and building society but is not readily accessible |
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budget defecit |
where government spending exceeds government receipts in a financial year |
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budget surplus |
where government spending is less than government receipts in a financial year |
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capital spending |
government spending to improve the productive capacity of the nation, including infrastructure, schools and hospitals |
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central bank |
the financial institution in a country or group of countries typically responsible for issuing notes and coins and setting short-term interensts |
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economic growth |
the capacity of the economyto produce more goods and services over time. |
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aggregate supply |
the total value of goodsand services supplied in the economy. |
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GDP |
the total value of goodsand services produced in the economy. |
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negative output gap |
where the economy isproducing less than its trend output. |
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positive output gap |
where the economy is producing more than its trend output |