The meaning of macroeconomic performance- Definitions Unit 2

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  • Created by: hayley
  • Created on: 28-03-13 15:48
Aggregate Demand
Total demand in the economy AD=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
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 GDP exceeds trend GDP increasing inflationary 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 or services purchased from abroad
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Exports
goods or services sold abroad
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employment
where labour is actively engaged in a productive activity usually in exchange for payments such as wages
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unemployment
those without a job but who are seeking work at current wage rates
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exporting
the sale of goods or services to a foreign country - generates income for the home country
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importing
the purchase of goods and services from abroad - leads to expenditure for the home country
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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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