macro definitions + market power Flashcards
aggregate demand
values of total demand for all goods and services in the economy for a time period at all price levels
gdp
total market values of all final goods and services produced inside the economy in a period of time
gni
total income received by residents of a country, regardless of where the factors are located
real gdp
total market values of all final goods and services produced inside the economy in a period of time accounting inflation
sustainability
situation that we can meet the needs of the current generation without compromising the needs of the future generation
infrastructure
large scale of public system provided by the government to increase productivity
investment
expense spent by the firms to buy capitals
business confidence
expectations of firms to future profit
consumer confidence
expectation of households to future income
foreign direct investment
long term investment from multinational cooperations form the foreign economy to the hosting economy
aggregate supply
total planned national output being produced at different price levels
deflationary gap
when output equilibrium is below the optimal output
inflationary gap
when the equilibrium output is greater than the optimal output
gdp
market value of all final goods and services produced in an economy over a time period
nominal gdp
measured using the current market prices
green gdp
index of economic growth while considering the environmental consequences of the economic growth factored in
inflation
sustained increase in the general price level for goods and services in an economy
disinflation
inflation improving but still persisting
consumer price index
measures cost of living for a typical household in an economy
menu costs
cost spent on updating the catalogues
production possibility curve
shows combinations of maximum output that can be produced by an economy with fixed resources and technology
equality
each individual or group of people is given the same resources or opportunities
equity
situation that recognises that each person has different circumstances and allocates the exact resources and opportunities needed to reach an equal outcome
absolute poverty
people with income level less than USD 2.5, the extreme poverty line, and cant afford basic physical needs
relative poverty
compares income of individuals with median incomes
transfer payments
payments made by the government for which no goods and services are exchange, such as unemployment benefits and subsidies
economic growth
increase in real output overtime
economic development
increase well-being of households in multiple dimensions, increase income, income equality, health etc
monopoly
only one dominant seller in the market, with high entry barriers and imperfect information
relative poverty
income earned is below a certain percentage of the median income in the social class the individual is in
monetary policy
changes in interest rates or money supply by the central bank or demand side policies
