As lvls

Question 1

Recession

Answer 1

Linked with GDP, it is the negative growth of GDP for over 2 consecutive quarters.

Question 2

Why do governments borrow?

Answer 2

Governments borrow to finance government expenditure not covered by
receipts or taxation or to finance a deficit.

Question 3

Free goods

Answer 3

Goods that do not have any opportunity cost.

Question 4

PES

Answer 4

Numerical measure of responsiveness of quantity supplied to change in price.

Question 5

Elastic

Answer 5

Relative change in quantity demanded is greater than change in price, income or prices of substitutes & complements.

Question 6

Inelastic

Answer 6

Relative change in quantity demanded is less than the change in price, income or the prices of substitutes and complements.

Question 7

What makes a product elastic/inelastic

Answer 7

• Ease with which production can be increased or decreased
• Availability of stocks

Question 8

When goods are substitutes the value would be..

Answer 8

Positive

Question 9

Aggregate Supply

Answer 9

Or total output means the total supply of goods and services produced in an economy.

Question 10

AS will increase..

Answer 10

Through increase in productivity/fall in unused resources.

Question 11

Money supply

Answer 11

Total amount of money in an economy.

Question 12

How can an increase in money supply affect AD?