Economics F582

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Aggregate demand
The total demand for a country's goods and services at a given price level and in a given time period
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Transfer payments
money transferred from one person or group to another not in return for any good or service
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Trade surplus
the value of exports exceeding the value of imports
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Trade deficit
the value of imports exceeding the value of imports
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Consumer confidence
How optimistic consumers are about future economic prospects
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Average propensity to consume (APC)
The proportion of disposable income spent. It is the consumer expenditure divided by disposable income
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Net savers
People who save more than they spend
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stock of assets e.g. property, shares and money held in savings accounts
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Distribution of income
how income is shared out between households in a country
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A sustained rise in the price level
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Capacity utilisation
The extent to which firms are using their capital goods
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Real GDP
The country's output measured in constant prices and adjusted according to inflation
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Gross domestic product (GDP)
The total output of goods and services produced in a country
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Exchange rate
The price of one currency in terms of another currency
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Government bond
A financial asset issued by the central or local government as a means of borrowing money
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Aggregate supply
The total amount producers in an economy are willing and able to supply at a given time period
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Output, or production, of a good or service per worker per unit of a fact of production in a given time period
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Transfer of assets from the public to the private sector
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Macroeconomic equilibrium
A situation where aggregate demand equals aggregate supply and real GDP is not changing
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Circular flow on income
The movement of spending and income throughout the economy
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Factor services
The services provided by the factors of production
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Multiplier effect
The process by which any change in a component go aggregate demand results in a greater final change in real GDP
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Withdrawal of possible spending from the circular flow of income
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Additions of extra spending into the circular flow of income
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The growth in aggregate demand outstripping the growth in aggregate supply, resulting in inflation
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Output gap
The difference between an economy's actual and potential real GDP
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Trend growth
The expected increase in potential output over time
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Card 2


Transfer payments


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

Card 3


Trade surplus


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Card 4


Trade deficit


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Card 5


Consumer confidence


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