macro and economic growth

Question 1

withdrawals

Answer 1

households’ income that is not passed on to domestic firms through spending on goods and services produced by these domestic firms

Question 2

injections

Answer 2

income receipt by domestic firms that do not arise through household spending

Question 3

actual growth

Answer 3

refers to the increase of actual national output

Question 4

potential growth

Answer 4

refers to the increase in the country’s capacity to produce ie. an increase in the country’s potential national output

Question 5

labor productivity

Answer 5

the measure of output obtained per unit of labour input used in production

Question 6

sustained economic growth

Answer 6

increase in real national output at a rate that does not cause inflation rates to accelerate over a period of time

Question 7

sustainable economic growth

Answer 7

sustained economic growth at a rate that does not cause significant socio economic problems, especially for future generations

Question 8

inclusive economic growth

Answer 8

sustained economic growth that is broad based across economic sectors and create productive employment opportunities for a majority of the population

Question 9

aggregate demand

Answer 9

the total demand of domestically produced goods and services that buyers collectively desire to purchase at each general price level in a given time period

Question 10

aggregate supply

Answer 10

the total supply of domestically produced goods and services that sellers collectively desire to sell at each general price level in a given time period

Question 11

multiplier size

Answer 11

refers to the number of times that the increase in national income exceeds the increase in autonomous expenditure