The total level of demand in an economy at any given price at a moment in time.
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Aggregate Supply (AS)
The total amount of output in the economy at any given price at a moment in time.
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Animal Spirits
The level of confidence of business owners.
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Balance of Payments
A record of all financial dealings over a period of time between economic agents of one country and another.
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Base Year
A year chosen as a good comparison in series of data when building an index; it is automatically given an index figure of 100.
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Boom
The peak of the business cycle; when growth is high.
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Budget
Where the government lays out their spending and taxation plans.
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Budget Deficit
When the government spends more money than it receives.
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Budget Surplus
When the government receives more money than it spends.
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Circular Flow
A model of the economy which shows the goods and services, the factors of production and money around the economy.
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Claimant Count
A measure of unemployment; the number of people receiving benefits for being unemployed.
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Consumer Price Index (CPI)
Official measure used to calculate inflation, using a weighed basket of goods.
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Consumption
Consumer spending on goods and services.
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Cost Push Inflation
Inflation caused by a decrease in AS.
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Current Account
A record for the payment of the purchase and sale goods and services, as well as the income and transfers.
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Current Account Deficit
When more money leaves the country than enters, so the current account is negative.
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Current Account Surplus
When more money enters the country than leaves, so the current account is positive.
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Cyclical Unemployment
Unemployment caused by lack of AD.
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Deflation
A persistent fall in prices of goods and services.
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Deflationary Policy
Fiscal and monetary policy which is aimed at reducing AD.
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Demand Pull Inflation
Inflation caused by an increase in AD.
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Depreciation
The reduction in the value of machinery over time.
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Direct Tax
Taxes paid straight to the government by the individual taxpayer.
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Disinflation
A reduction in the rate of inflation.
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Disposable Income
The money consumers have left to spend, after taxes have been taken away and benefits added.
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Economic Growth
An increase in the long term productive potential in the economy; an increase in the amount of goods and services which are produced, measured by an increase in real GDP.
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Employed
Someone who does more than 1 hour of paid work a week or is temporarily away from work, on a government supported training scheme.
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Expansionary Policy
Fiscal or monetary policy which aimed at increasing AD.
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Other cards in this set
Card 2
Front
The total level of demand in an economy at any given price at a moment in time.
Back
Aggregate Demand (AD)
Card 3
Front
The total amount of output in the economy at any given price at a moment in time.
Back
Card 4
Front
The level of confidence of business owners.
Back
Card 5
Front
A record of all financial dealings over a period of time between economic agents of one country and another.
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