Macro Definitions 3.0 / 5 based on 1 rating ? EconomicsMacroeconomicsASOCR Created by: SimoneCreated on: 11-04-14 14:15 International Trade exchange of goods and services over national borders 1 of 25 Free Trade when a country abolishes any controls or restrictions on international trade 2 of 25 Protectionism protection of domestic industries from foreign competitions 3 of 25 Tariff tax on imports 4 of 25 Quota limit on the quantity of imports 5 of 25 Red Tape time delaying custom procedures 6 of 25 Voluntary Export Restraint (VER) limit on the exports of a country with the agreement of that country's government 7 of 25 Embargoes ban on the import or export of goods to a country and/or the ban of trade with a particular country 8 of 25 GDP total value of output of goods and services produced in a country 9 of 25 GDP per head GDP divided by a country's total population 10 of 25 Balance of Payments record of a country's financial transactions with the rest of the world 11 of 25 Exchange Rate the price of one currency in terms of another 12 of 25 Aggregate Demand total demand for a country's goods and services at a given price level and in a given period of time 13 of 25 Aggregate Supply total output of goods and services by firms within an economy at a given price level 14 of 25 Economic Growth short run: increase in real GDP long run: increase in productive capacity 15 of 25 Inflation a sustained rise in the price level 16 of 25 Rate of Inflation the percentage increase in the price level over a period of time 17 of 25 Unemployment a situation where people are out of work but are willing and able to work 18 of 25 Unemployment Rate the percentage of the labour force who are out of work 19 of 25 Circular Flow of Income movement of spending and income throughout the economy 20 of 25 Nominal GDP GDP in current prices - not adjusted to inflation 21 of 25 Real GDP GDP in constant prices - adjusted to inflation 22 of 25 Demand-Pull Inflation increase in the price level caused by an increase in AD 23 of 25 Cost-Push Inflation increase in price level caused by an increase in the costs of production 24 of 25 Multiplier Effect the process by which any change in a component of AD results in a greater final change in real GDP 25 of 25
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