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32 Cards in this Set
- Front
- Back
- 3rd side (hint)
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? Real GDP |
Value of GDP adjusted for inflation |
adjusted for what? |
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? Nominal GDP |
Value of GDP without being adjusted for inflation |
is it adjusted |
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? Total GDP |
Combined monetary value of all goods and services produced within a country's borders during a specific time period |
is it within borders |
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? GDP per capita |
Value of total GDP divided by the population of a country |
divided by? |
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? GNP |
Market value of all products produced in an annum by the labour and property supplied by the citizens of one country |
What is supplied? |
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?RUB |
Sum value added by all producers who reside in a nation, plus product taxes not included in the value of output, minus subsidies, plus receipts of primary income from abroad |
Sum of ... plus... minus... plus... |
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PPP |
Theory that estimates how much the exchange rate needs adjusting so that exchange between countries is equivalent |
Exchange rate |
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Disinflation |
Falling rate of inflation, average price level is still rising but slower |
Is it still rising |
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Deflation |
Average price level in the economy falls, negative inflation rate |
Average price level |
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? CPI |
Measures household purchasing power |
What does it measure |
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Demand Pull |
When aggregate demand is growing unsustainably |
What is growing? |
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Cost push |
When firms face rising costs |
Who faces it? |
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Exports |
Goods and services sold to foreign countries and are positive in the balance of payments
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As they are an inflow ... |
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Imports |
Goods and services bought from foreign countries, negative on the balance of payments |
As they are an outflow... |
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Current account on the balance of payments |
Balance of trade in goods and services
? |
Goods and services |
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Consumer spending |
How much consumers spend on goods and services
? |
Who spends what |
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Government spending |
How much the government spends on state goods and services |
?Who spends what |
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Wealth effect |
Rise in price of a good such as houses make people feel wealthier so they are likely to spend more
? |
Rise in and example |
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Disposable income |
Amount of income consumers have left over after taxes and social security charges have been remved |
After what? |
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MPC |
How much a consumer changes their spending following a change in income |
What changes after what happens |
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Gross investment |
Amount that a firm invests in business assets that does not account for depreciations
? |
What is not accounted for? |
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Depreciation |
When something starts to lose value |
What happens to its value |
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Net investment |
Actual addition to the capital stock of an economy after depreciations have been considered |
Whats been considered |
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Withdrawal |
Removes it from the circular flow |
Remove from what? |
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Injections |
Money into the circular flow |
Into what? |
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Export |
Goods and services are sold to foreign countries and revenue is earned from the sale |
Whats sold to who and what is earned? |
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Import |
Money leaves the economy when goods and services are brought from abroad |
Where do goods and services are bought from? |
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Wealth |
Stock of assets
? |
Stock |
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Income |
Flow of money |
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Productivity |
Output per unit of input |
output of... |
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?Economic Growth |
?Growth in real GDP |
?Growth in what |
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?Inflation |
?Increase in average price level |
?Increase in what |
