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18 Cards in this Set
- Front
- Back
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aggregate demand
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total demand in the economy made up of consumption, investment, government expenditure and net exports
C + I + G + (X - M) |
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aggregate supply
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the total value of goods and services supplied in the economy
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economic growth
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the total value of goods and services produced in the economy
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negative output gap
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where the economy is producing less than its trend output
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positive output gap
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when actual GDP exceeds trend GDP increasing inflationary pressure
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trade-off
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where one macro-economic objective has to be curtailed in favour of another objective
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imports
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goods or services purchased from abroad
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exports
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goods or services sold abroad
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employment
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where labour is actively engaged in a productive activity usually in exchange for payments such as wages
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unemployment
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those without a job but who are seeking work at current wages rates
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exporting
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the sale of goods or services to a foreign country - generates income for the home country
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importing
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the purchase of goods and services from abroad - leads to expenditure for the home country
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economic indicators
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economic statistics that provide information about the expansions and contractions of business cycles
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Nominal GDP / nominal national income / nominal output
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GDP / income / output figures not adjusted for inflation
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Real GDP/real national income/
real output |
GDP/income/output figures adjusted for inflation
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GDP per capita
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GDP divided by the population - a measure of living standards
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Index numbers
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a weighted average of a group of items compared to a given base value of 100
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weighting
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where a commodity is given a weighting proportional to its importance in the general pattern of consumer spending
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