Key Terms

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AGGREGATE DEMAND
TOTAL DEMAND IN THE ECONOMY MADE UP OF 'C + I + G + (X-M)
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AGGREGATE SUPPLY
THE TOTAL VALUE OF GOODS AND SERVICES SUPPLIED IN THE ECONOMY
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ECONOMIC GROWTH
THE CAPACITY OF THE ECONOMY TO PRODUCE MORE GOODS AND SERVICES OVER TIME
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GROSS DOMESTIC PRODUCT (GDP)
THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE ECONOMY
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NEGATIVE OUTPUT GAP
WHERE THE ECONOMY IS PRODUCING LESS THAN ITS TREND OUTPUT
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POSITIVE OUTPUT GAP
WHEN ACTUAL GROWTH IS ABOVE TREND GROWTH. INCREASING INLFATIONARY PRESSURE
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TRADE-OFF
WHERE ONE MACROECONOMIC OBJECTIVE HAS TO BE CURTAILED IN FAVOUR OF ANOTHER OBJECTIVE
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IMPORTS
GOODS AND SERVICES PURCHASED FROM ABROAD
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EXPORTS
GOODS AND SERVICES SOLD ABROAD
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Other cards in this set

Card 2

Front

THE TOTAL VALUE OF GOODS AND SERVICES SUPPLIED IN THE ECONOMY

Back

AGGREGATE SUPPLY

Card 3

Front

THE CAPACITY OF THE ECONOMY TO PRODUCE MORE GOODS AND SERVICES OVER TIME

Back

Preview of the back of card 3

Card 4

Front

THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE ECONOMY

Back

Preview of the back of card 4

Card 5

Front

WHERE THE ECONOMY IS PRODUCING LESS THAN ITS TREND OUTPUT

Back

Preview of the back of card 5
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