Economics Definitions - Unit 2 (Macroeconomics)

Definitions are a key part of the AS economics exam. The following includes definitions for the AQA Economics Unit 1 exam. Although being specifically written for AQA, the terms will still be useful for other exam boards. This list is not a complete guide but does cover some of the majority of terms used throughout the AS course.

HideShow resource information
  • Created by: josh-95
  • Created on: 20-04-16 13:10

Pages in this set

Page 1

Preview of page 1
Economics Definitions ­ Unit 2 (Macroeconomics)

Definitions are a key part of the AS economics exam. The following includes definitions
for the AQA Economics Unit 2 exam. Although being specifically written for AQA, the
terms will still be useful for other exam boards. This list is not a complete guide…

Page 2

Preview of page 2
Cost push inflation When firms respond to rising costs of
production by increasing prices to protect
their profit margins.

Price index An index number which shows the extent to
which a price has changed compared to
previous years.

Consumer price index (CPI) The official measure of inflation looks at the…

Page 3

Preview of page 3
Paradox of thrift If everyone starts to save AD will shift to the
left resulting in a recession ­ the one thing
people tried to avoid by saving.

Multiplier effect When a change in one component of
aggregate demand will lead to an even
greater change in national output.

Accelerator…

Page 4

Preview of page 4
Keynesian fiscal policy Policy which aims to shift AD to the right.

Supply side fiscal policy The use of policy to create incentives for
people to work and therefore increase the
productive potential of an economy.

Income tax A progressive tax levied on an individual's
earnings.

Crowding out A process…

Page 5

Preview of page 5
Consumer confidence An indicator that measures the degree of
optimism or pessimism that consumers
have within markets.

Business confidence An indicator that measures the degree of
optimism or pessimism that businesses
have within markets.

Unemployment Those who are without a job but are
seeking employment.

Claimant Count Measures the number…

Page 6

Preview of page 6
Notes

The definitions have been collected from a variety of sources. I have included a few links
below which you may find useful when preparing for your exam.

- www.tutor2u.net/economics
- www.economicsonline.co.uk
- www.investopedia.com/dictionary/
- www.economicshelp.org
- www.as-notes.uk




Page | 6

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »