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.

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

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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…

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Page 4

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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…

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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 6

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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…

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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.

  • 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
Page | 2

Page 4

Preview of page 4
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 5

Preview of page 5
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 6

Preview of page 6
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…

Comments

No comments have yet been made