Macro Economics Definitions .2

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  • Created by: Soph
  • Created on: 12-04-16 19:11
National income
This is the flow of new output produced by the economy in a particular period
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Wealth
The stock of assets which have value at a point in time
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National income/product/output
The flow of new output produced by the economy in a particular period
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Consumption
The total planned spending by households on consumer goods and services produced within the economy
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Closed economy
An economy with no international trade
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Saving
Income which is not spent
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Withdrawal
This is a leakage of spending power out of the circular flow of income into saving, taxation or imports
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Injection
Spending entering the circular flow of income as a result of investment, government spending and exports
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Macroeconomic equilibrium
This is when AD=AS
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Economic shock
This is an unexpected event hitting the economy which could be (un)favourable
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Accelerator
A change in the rate of growth of national income leading to a change in the level of investment (A>G>I)
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Multiplier
Any change in spending resulting in a larger change in national income
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Marginal propensity to consume (MPC)
This is the fraction of an increase in disposable income that people plan to spend on consumer goods
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Other cards in this set

Card 2

Front

The stock of assets which have value at a point in time

Back

Wealth

Card 3

Front

The flow of new output produced by the economy in a particular period

Back

Preview of the back of card 3

Card 4

Front

The total planned spending by households on consumer goods and services produced within the economy

Back

Preview of the back of card 4

Card 5

Front

An economy with no international trade

Back

Preview of the back of card 5
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