Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

econ > definitions theme 2 > Flashcards

definitions theme 2 Flashcards

1
Q

what is actual growth

A

economic growth measured by changes in real GDP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what’re animal spirits

A

the level of confidence of business owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is balance of payments

A

a record of all financial dealings over a period of time between economic agents of one country and another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is budget

A

where the government lays out their spending and taxation plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is budget deficit/surplus

A

when the government spends more money than it receives

when the government receives more money than it spends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is the circular flow

A

a model of the economy which shows the flow of goods and services, the factors of production and money around the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the claimant count

A

a measure of unemployment; the # of people receiving benefits for being unemployed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the CPI

A

official measure used to calculate the rate of inflation, using a weighted basket of goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is consumption

A

consumer spending on goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the current account

A

a record of the payments for the purchase and sale of goods and services, as well as income and transfers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the current account deficit/surplus

A

when more money leaves the country than enters; the current account is negative

when more money enters the country than leaves; the current account is positive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is cyclical unemployment

A

unemployment caused by a lack of AD (workers are laid off to cut costs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is deflation

A

a persistent fall in prices of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is a deflationary and expansionary policy

A

deflationary: fiscal or monetary policy aimed to reduce AD

expansionary: fiscal or monetary policy aimed to increase AD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is depreciation

A

the reduction in the value over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is a direct tax

A

taxes paid straight to the government by the individual taxpayer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is disinflation

A

a reduction in the rate of inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is economic growth

A

an increase in the long run productive potential in the economy; an increase in the amount of goods and services which are produced, measured by an increase in real GDP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is fiscal policy

A

the use of borrowing, government spending and taxation to manipulate the level of AD and improve macroeconomic performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is frictional unemployment

A

unemployment caused when people move between jobs and enter the job market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is GDP

A

the value of goods/services produced in a country over a given period of time

22
Q

what is gdp per capita

A

total gdp / population

23
Q

what is gross investment

A

investment both to replace old machinery that has depreciated and to create/buy new ones

24
Q

what is GNI

A

gross national income is the value of goods/services produced by a country over a period of time + net overseas interest payments and dividends

25
Q

what is GNP

A

gross national product is the value of goods and services produced by citizens of a country, living in the country or not

26
Q

what is an indirect tax

A

tax where the person charged with paying the money to the government is able to pass on the cost to someone else

27
Q

what is inflation

A

the general rise in the GPL of goods and services that erodes the purchasing power of money

28
Q

what’re interventionist supply side policies

A

policies designed to correct market failure, where the government intervenes in the market

29
Q

what is investment

A

spending by businesses on capital goods, leading to the creation of real/consumer goods

30
Q

what is the long run

A

when all factors are variable

31
Q

what’re market based supply side policies

A

policies designed to remove anything which prevents the free market system from working efficiently

32
Q

what is monetary policy

A

attempts of the CB/regulatory authority to control the AD level by altering base interest rates or the amount of money in the economy

33
Q

what is the Monetary Policy Committee (MPC)

A

economists who meet monthly to set the bank rate as well as other monetary instruments

34
Q

what is national expenditure

A

the value of spending by households on goods/services

35
Q

what is national income

A

the value of income paid by firms to households in return for land, labour capital and enterprise

36
Q

what is national output

A

the value of the flow of goods and services from firms to households

37
Q

what is net investment

A

gross investment - depreciation

38
Q

what is nominal GDP

A

GDP that doesn’t take inflation into account; at current prices

39
Q

what is an output gap

A

difference between the long term trend rate of growth and actual growth

40
Q

what is PPP

A

Purchasing Power Parity measures the exchange rate of one country to another, that compared the costs of living in different countries through comparing a typical basket of goods

41
Q

what is QE

A

when the central bank buys assets in exchange for money in an attempt to increase the money supply

42
Q

what is real wage unemployment

A

unemployment caused when wages are set above the equilibrium wage rate

43
Q

what is seasonal unemployment

A

unemployment caused when an industry only operates during certain times of the year

44
Q

what is the short run

A

when at least 1 factor of production is fixed

45
Q

what is structural unemployment

A

unemployment caused by the long-term decline of an industry

46
Q

what’re supply side policies

A

government policies aimed at increasing the productive potential of the economy and shifting LRAS to the right

47
Q

what is underemployment

A

those working part time, 0 hour contracts or on government training schemes but would rather work full time or those employed in areas under their skill level

48
Q

what is value/volume of GDP

A

value: nominal values of GDP; at current prices

volume: real values of GDP; the size of the basket of goods

49
Q

what is unemployment

A

those willing and able to work but cannot find work, and have actively sought work for the last 4 weeks

50
Q

what is wealth

A

a stock of assets

econ (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions