2.2 Flashcards
1
Q
What is aggregate demand?
A
Total planned real expenditure on a country’s goods and services in a given period of time.
2
Q
What is government spending?
A
Government spending is welfare spending, public services, state investment.
3
Q
What is the purchasing power polity (PPP)?
A
The idea that items should cost the same in different countries, based on the that exchange rate at that time
4
Q
What is Big Mac index?
A
- Measures each currency against a common standard
