Economics F582

  • Created by: Fathma
  • Created on: 18-03-14 19:45
Aggregate demand
The total demand for a country's goods and services at a given price level and in a given time period
1 of 27
Transfer payments
money transferred from one person or group to another not in return for any good or service
2 of 27
Trade surplus
the value of exports exceeding the value of imports
3 of 27
Trade deficit
the value of imports exceeding the value of imports
4 of 27
Consumer confidence
How optimistic consumers are about future economic prospects
5 of 27
Average propensity to consume (APC)
The proportion of disposable income spent. It is the consumer expenditure divided by disposable income
6 of 27
Net savers
People who save more than they spend
7 of 27
stock of assets e.g. property, shares and money held in savings accounts
8 of 27
Distribution of income
how income is shared out between households in a country
9 of 27
A sustained rise in the price level
10 of 27
Capacity utilisation
The extent to which firms are using their capital goods
11 of 27
Real GDP
The country's output measured in constant prices and adjusted according to inflation
12 of 27
Gross domestic product (GDP)
The total output of goods and services produced in a country
13 of 27
Exchange rate
The price of one currency in terms of another currency
14 of 27
Government bond
A financial asset issued by the central or local government as a means of borrowing money
15 of 27
Aggregate supply
The total amount producers in an economy are willing and able to supply at a given time period
16 of 27
Output, or production, of a good or service per worker per unit of a fact of production in a given time period
17 of 27
Transfer of assets from the public to the private sector
18 of 27
Macroeconomic equilibrium
A situation where aggregate demand equals aggregate supply and real GDP is not changing
19 of 27
Circular flow on income
The movement of spending and income throughout the economy
20 of 27
Factor services
The services provided by the factors of production
21 of 27
Multiplier effect
The process by which any change in a component go aggregate demand results in a greater final change in real GDP
22 of 27
Withdrawal of possible spending from the circular flow of income
23 of 27
Additions of extra spending into the circular flow of income
24 of 27
The growth in aggregate demand outstripping the growth in aggregate supply, resulting in inflation
25 of 27
Output gap
The difference between an economy's actual and potential real GDP
26 of 27
Trend growth
The expected increase in potential output over time
27 of 27

Other cards in this set

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


Preview of the front of card 3

Card 4


Trade deficit


Preview of the front of card 4

Card 5


Consumer confidence


Preview of the front of card 5
View more cards


No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Aggregate Demand and Supply and their interaction resources »