Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

13 Cards in this Set

  • Front
  • Back
aggregate demand
total demand in the economy made up of consumption, investment, goverment expenditure and net exports.
C + I + G + (X - M)
aggregate supply
the total value of goods and services supplied in the economy
economic growth
the capacity of the economy to produce more goods and services over time
gross domestic product
the total value of goods and services produced in the economy
negative output gap
whre the economy is producing less than its trend output
positive output gap
when actual GDP exceeds trend GDP increasing inflationalry pressure
where one macro-economic objective has to be curtailed in favour of another objective
goods or services purchased from abroad
goods or services sold abroad
where labour is actively engaged in a productive activity usually in exchange for payments such as wages
those without a job but who are seeking work at current wage rates.
the sale of goods or services to a foriegn country - generates income for the home country
the purchase of goods and services from abroad - leads to expenditure for the home country