OCR AS Economics: F582: Macro: The National and International Economy Part 1

Definition cards from Bamford textbook for the Macroeconomics paper (OCR F582), definitions taken from Chapter 4: Aggregate demand and aggregate supply and their interaction. Part 1 of 3 sets of revision cards covering the whole paper. 

HideShow resource information
  • Created by: Josie
  • Created on: 04-02-11 19:05

Aggregate demand

1 of 90

Aggregate demand

The total demand for a country's goods and services at a given price level and in a given time period

2 of 90

Price level

3 of 90

Price level

The average of each of the prices of all the products produced in an economy

4 of 90

Consumer expenditure

5 of 90

Consumer expenditure

Spending by households on consumer products

6 of 90

Investment

7 of 90

Investment

Spending on capital goods

8 of 90

Government spending

9 of 90

Government spending

Spending by the central government and local government on goods and services

10 of 90

Exports

11 of 90

Exports

Products sold abroad

12 of 90

Imports

13 of 90

Imports

Products bought from abroad

14 of 90

Net exports

15 of 90

Net exports

The value of exports minus the value of imports

16 of 90

Transfer payments

17 of 90

Transfer payments

Money transferred from one person or group to another not in return for any good or service

18 of 90

Job seeker's allowance

19 of 90

Job seeker's allowance

A benefit paid by the government to those unemployed and trying to find a job

20 of 90

Trade surplus

21 of 90

Trade surplus

The value of exports exceeding the value of imports

22 of 90

Trade deficit

23 of 90

Trade deficit

The value of imports exceeding the value of exports

24 of 90

Consumer condidence

25 of 90

Consumer confidence

How optimistic consumers are about future econonomic prospects

26 of 90

Rate of interest

27 of 90

Rate of interest

The charge for borrowing money and the amont paid for lending money

28 of 90

Average prospensity to consume (APC)

29 of 90

Average prospensity to consume (APC)

The proportion of disposable income spent. It is consumer expenditure divided by disposable income

30 of 90

Net savers

31 of 90

Net savers

People who save more than they borrow

32 of 90

Wealth

33 of 90

Wealth

A stock of assets, e.g. property, shares and money held in a savings account

34 of 90

Distribution of income

35 of 90

Distribution of income

How income is shared out between households in a country

36 of 90

Inflation

37 of 90

Inflation

A sustained rise in the price level

38 of 90

Saving

39 of 90

Saving

Real disposable income minus spending

40 of 90

Average prospensity to save (APS)

41 of 90

Average prospensity to save (APS)

The proportion of disposable income saved. It is saving divided by disposable income.

42 of 90

Target savers

43 of 90

Target savers

People who save with a target figure in mind

44 of 90

Dissave

45 of 90

Dissave

Spending more than disposable income

46 of 90

Savings ratio

47 of 90

Savings ratio

Savings as a proportion of disposable income

48 of 90

Capacity utilisation

49 of 90

Capacity utilisation

The extent to which firms are using their capital goods

50 of 90

Corporation tax

51 of 90

Corporation tax

A tax on firms profits

52 of 90

Retained profits

53 of 90

Retained profits

Profit kept by firms to finance investment

54 of 90

Unit cost

55 of 90

Unit cost

Average cost per unit of output

56 of 90

Real GDP

57 of 90

Real GDP

The country's output measured in constant prices and so adjusted for inflation

58 of 90

Gross domestic product (GDP)

59 of 90

Gross domestic product (GDP)

The total output of goods and services produced in a country

60 of 90

Exchange rate

61 of 90

Exchange rate

The price of one currency in terms of another

62 of 90

Tariff

63 of 90

Tariff

A tax on imports

64 of 90

Government bond

65 of 90

Government bond

A financial asset issued by the central or local government as a means of borrowing money

66 of 90

Aggregate supply

67 of 90

Aggregate supply

The total amount that produces in an economy are willing and able to supply at a given price level in a given time period

68 of 90

Productivity

69 of 90

Productivity

Output, or production, of a good or service per worker per unit of a factor of production in a given time period

70 of 90

Privatisation

71 of 90

Transfer of assets from the public to the private sector

72 of 90

Macroeconomic equilibrium

73 of 90

Macroeconomic equilibrium

A situation where aggregate demand equals aggregate supply and real GDP is not changing

74 of 90

Circular flow of income

75 of 90

Circular flow of income

The movement of spending and income throughout the economy

76 of 90

Factor services

77 of 90

Factor services

The services provided by the factors of production

78 of 90

Leakages

79 of 90

Leakages

Withdrawals of possible spending from the circular flow of income

80 of 90

Injections

81 of 90

Injections

Additions of extra spending into the circular flow of income

82 of 90

Multiplier effect

83 of 90

Multiplier effect

The process by which any change in a component of aggregate demand results in a greater final change in real GDP

84 of 90

Overheating

85 of 90

Overheating

The growth in aggregate demand outstripping the growth in aggregate supply, resulting in inflation

86 of 90

Output gap

87 of 90

Output gap

The difference between an economy's actual and potential real GDP

88 of 90

Trend growth

89 of 90

Trend growth

The expected increase in potential output over time

90 of 90

Comments

Kunal Sarin

Brilliant, cheers!

KanKan

Great work!

Similar Economics resources:

See all Economics resources »See all Macroeconomic indicators resources »