Macro 1 - Economic growth Flashcards
Potential growth
A change in the productive potential of the economy
National income
The value of income paid by firms to households in return for land, labour, capital and enterprise
Indirect tax
Tax charged on producers of goods and services is paid by the consumers indirectly
Wealth
A stock of assets
Direct tax
Tax paid straight to the government by the tax payer
Disposable income
The money consumers have left to spend after taxes and costs have been taken away
Income
A flow of assets
Injection
Money entering the circular flow of income resulting from Investment, Gov spending and Exports
Gross Domestic Product (GDP)
The value of goods and services produced in a country over a given time period
Gross National Income (GNI)
The value of goods and services produced in a country over a given time period plus money earnt overseas
Real GDP
GDP adjusted to inflation
Total GDP
The GDP of the whole country
Value of GDP
Nominal value of GDP; GDP at current prices
Volume of GDP
Real values of GDP; the size of the basket of goods
Economic growth
An increase in the long term productive potential in the economy
