Aggregate demand and supply and their interaction - Keywords

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  • Created by: Ben
  • Created on: 26-11-12 21:13
the total demand for a country's goods and services at a given price level and in a given time period.
aggregatedemand
1 of 45
the average of each of the prices of all the products produced in an economy.
pricelevel
2 of 45
spending by households on consumer products.
consumerexpenditure
3 of 45
spending on capital goods.
investment
4 of 45
spending by the central and local governments on goods and services.
governmentspending
5 of 45
products sold abroad.
exports
6 of 45
products brought from abroad.
imports
7 of 45
the value of exports minus imports.
netexports
8 of 45
money transferred from one person or group to another not in return for any good or service.
transferpayments
9 of 45
a benefit paid by the government to those unemployed and trying to find a job.
jobsekersallowance
10 of 45
the value of exports exceeding the value of imports.
tradesurplus
11 of 45
the value of imports exceeding the value of exports.
tradedeficit
12 of 45
how optimistic consumers are about future economic prospects.
consumerconfidence
13 of 45
the charge of borrowing money and the amount paid for lending money.
rateofinterest
14 of 45
the proportion of disposable income spent, it is consumer expenditure divided by disposable income.
averageprospensitytoconsume
15 of 45
people who save more than they borrow.
netsavers
16 of 45
a stock of assets e.g. property, shares and money in a savings acount.
wealth
17 of 45
how income is shared out between households in a country.
distributionofincome
18 of 45
a sustained rise in price level.
inflation
19 of 45
real disposable income miknus spending.
saving
20 of 45
the proportion of disposable income saved, it is saving divided by disposable income.
averageprospensitytosave
21 of 45
people who save with a target figure in mind.
targetssavers
22 of 45
spending more than disposable income.
dissave
23 of 45
savings as a proportion of disposable income.
savingsratio
24 of 45
the extent to which firms are using capital goods.
capacityutilisation
25 of 45
a tax on firms' profits.
corporationtax
26 of 45
profit kept by firms to finance investment.
retainedprofits
27 of 45
average cost per unit of output.
unitcost
28 of 45
the country's output measured in constant prices and so adjusted by inflation.
realgdp
29 of 45
the total output of goods and services produced in an economy.
grossdomesticproduct
30 of 45
the price of one currency in terms of another currency.
exchangerate
31 of 45
a tax on imports
tariff
32 of 45
a finacial asset issued by the government as a means of borrowing monney.
governmentbond
33 of 45
the total amount that producers in an economy are willing and able to supply at a given price level at a given time period.
aggregatesupply
34 of 45
output or production, of a good or service per worker per unit of a factor of production in a given time period.
productivity
35 of 45
transfer of assets from the public to the private sector.
privatisation
36 of 45
a situation where AD equals AS and real GDP is not changing.
macroeconomicequilibrium
37 of 45
the movement of spending and income throughout an economy.
circularflowofincome
38 of 45
the servics provided by the factors of production.
factorservices
39 of 45
withdrawals of possible spending from the circular flow of income.
leakages
40 of 45
additions of extra spending into the circular flow of income.
injections
41 of 45
the process by which any change in a component of AD results in a greater final change in real GDP.
multipliereffect
42 of 45
the growth in AD outstripping the groth in AS resulting in inflation.
overheating
43 of 45
the difference between an economy's actual and potential real GDP.
outputgap
44 of 45
the expected increase in potential output over time.
trendgrowth
45 of 45

Other cards in this set

Card 2

Front

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

Back

pricelevel

Card 3

Front

spending by households on consumer products.

Back

Preview of the front of card 3

Card 4

Front

spending on capital goods.

Back

Preview of the front of card 4

Card 5

Front

spending by the central and local governments on goods and services.

Back

Preview of the front of card 5
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