Macro Definitions

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

Card 2

Front

when a country abolishes any controls or restrictions on international trade

Back

Free Trade

Card 3

Front

protection of domestic industries from foreign competitions

Back

Preview of the back of card 3

Card 4

Front

tax on imports

Back

Preview of the back of card 4

Card 5

Front

limit on the quantity of imports

Back

Preview of the back of card 5
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