OCR Macro economics glossary

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  • Created by: phoebe
  • Created on: 11-05-13 16:44
Define Absolute Advantage
when a country can make more of a given product using fewer resources than another nation. Unit cost of production is lower.
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Define Active Demand Management
Government use of fiscal or monetary policy to change levels of aggregate demand.
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Define actual GDP
The level of real GDP produced by a country in, say, one year.
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Define actual economic growth
an increase in real GDP from using more of an economy's existing resources. Shoer Run economic growth
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Define Aggregate Demand
total spending on domestic output at a give price level, over a period of time, usually a year
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Define Aggregate Supply
shows the total output domestic producers are willing and able to produce at a given price level, over a given period of time, usually one year
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Define Anticipated inflation
the expected rate of inflation for the near future
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Define Appreciation
an increase in the value of an asset or the exchange rate
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Define Automatic Stabilisers
changes in taxes and government spending beyond the control of the government and brought about by the economic cycle
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Define Average propensity to consume
the proportion of household income spent on product
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Define Balance of Payments
a record of economic transactions between residents of a country and the rest of the world, over a period of time, usually one year
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Define Balanced budget
Government revenue equals government spending
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Define the bank
A financial institution that accepts the deposits for savers and makes loans to borrowers
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Define Base Rate
the interest rate set by the bank of England. Commercial banks set their own interest rates for mortgages and loans around the base rate
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Other cards in this set

Card 2

Front

Define Active Demand Management

Back

Government use of fiscal or monetary policy to change levels of aggregate demand.

Card 3

Front

Define actual GDP

Back

Preview of the front of card 3

Card 4

Front

Define actual economic growth

Back

Preview of the front of card 4

Card 5

Front

Define Aggregate Demand

Back

Preview of the front of card 5
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