Brainscape's Knowledge GenomeTM

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


See full index

Economics AS (Macroeconomics) > Macroeconomic definitions > Flashcards

Macroeconomic definitions Flashcards

1
Q

Aggregate demand

A

The total demand for a country’s goods and services at a given price level and in a given time period

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

Price level

A

The average of each of the prices of all the products produced in an economy

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

Consumer expenditure

A

Spending by households on consumer products

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

investment

A

Spending on capital goods

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

Government spending

A

Spending by the central government and local government on goods and services

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

Exports

A

Products sold abroad

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

Imports

A

Products bought from abroad

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

Net exports

A

The value of exports minus the value of imports

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

Transfer payments

A

Money transferred from one person or group to another not in return for any good or service

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

Job seeker’s allowance

A

A benefit paid by the government to those unemployed and trying to find a job

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

Trade surplus

A

The value of exports exceeding the value of imports

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

Trade deficit

A

The value of imports exceeding the value of exports

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

Consumer confidence

A

How optimistic consumers are about future economic prospects

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

rate of interest

A

The charge for borrowing money and the amount paid for lending money

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

Average propensity to consume

A

The proportion of disposable income spent. It is consumer expenditure divided by disposable income

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

Net savers

A

People who save more than they borrow

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

Wealth

A

A stock of assets, e.g. property, shares and money held in a savings account

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

Distribution of income

A

How income is shared out between households in a country

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

Inflation

A

A sustained rise in the price level

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

Saving

A

Real disposable income minus spending

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

Average propensity to save

A

The proportion of disposable income saved. It is saving divided by disposable income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Target savers

A

People who save with a target figure in mind

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Dissave

A

Spending more than disposable income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Savings ratio

A

Savings as a proportion of disposable income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Capacity utilisation

A

The extent to which firms are using their capital goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Corporation tax

A

A tax on firms’ profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Retained profits

A

Profit kept by firms to finance investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Unit cost

A

Average cost per unit of output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Real GDP

A

The country’s output measured in constant prices and so adjusted for inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Gross Domestic Product

A

The total output of goods and services produced in a country within a specific time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Exchange rate

A

The price of one currency in terms of another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Tariff

A

A tax on imports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Government bond

A

A financial asset issued by the central of local government as a means of borrowing money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Aggregate supply

A

The total amount that producers in an economy are willing and able to supply at a given price level in a given time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Productivity

A

Output or production of a good or service per worker per unit of a factor of production in a given time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Privatisation

A

Transfer of assets from the public to the private sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Macroeconomic equilibrium

A

A situation where aggregate demand equals aggregate supply and real GDP is not changing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Circular flow of income

A

The movement of spending and income throughout the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Factor services

A

The services provided by the factors of production

40
Q

Leakages

A

Withdrawals of possible spending from the secular flow of income

41
Q

Injections

A

Additions of extra spending into the circular flow of income

42
Q

Multiplier effect

A

The process by which any change in a component of aggregate demand results in a greater final change in real GDP

43
Q

Overheating

A

The growth in aggregate demand outstripping the growth in aggregate supply, resulting in inflation

44
Q

Output gap

A

The difference between an economy’s actual and potential real GDP

45
Q

Tend Growth

A

The expected increase in potential output over time

46
Q

Economic Growth (Short Run)

A

An increase in real GDP

47
Q

Economic Growth (Long Run)

A

An increase in the productive capacity, that is, in the maximum output that an economy can produce

48
Q

Unemployment

A

A situation where people are out of work but are willing and able to work

49
Q

Labour force

A

The people who are employed and unemployed, that is, those who are economically active

50
Q

Elastic

A

Responsive to a change in market condition

51
Q

Inflation Rate

A

The percentage increase in the price level over a period of time

52
Q

Sustainable economic growth

A

economic growth that can continue over time and does not endanger future generations’ ability to expand productive capacity

53
Q

Tend Growth

A

The expected increase in potential output over time. It is a measure of how fast the economy can grow without generating inflation

54
Q

Full employment

A

A situation where those wanting and able to work can find employment at the going wage rate

55
Q

Current account deficit

A

When more money is leaving the country than entering it, as result of sales of its exports, income and current transfers from abroad being less than imports and income and current transfers going abroad.

56
Q

Hyperinflation

A

An inflation rate above 50%

57
Q

Nominal GDP

A

Output measured in current prices and so not adjusted for inflation

58
Q

Labour productivity

A

Output per worker hour

59
Q

Informal economy

A

economic activity that is not recorded or registered with the authorities in order to avoid paying tax or complying with regulations, or because the activity is illegal

60
Q

Economy of sale

A

The advantage of producing on large scarlet, in the form of lower long-run average cost

61
Q

Unemployment rate

A

The percentage of the labour force who are out of work

62
Q

Labour Force Survey

A

A measure of unemployment based on a survey using the ILO definition of unemployment

63
Q

Claimant count

A

A measure of unemployment that includes those receiving unemployment-related benefits

64
Q

Consumer Price Index

A

A measure of changes in the price of a representative basket of consumer goods and services.

65
Q

Retail Price Index

A

measure of inflation that is used for adjusting pensions and other benefits to take account of changes in inflation and frequently used in wage negotiations

66
Q

Cyclical unemployment

A

Unemployment arising from a lack of aggregate demand

67
Q

Structural unemployment

A

Unemployment caused by the decline of certain industries and occupations due to changes in demand and supply

68
Q

Frictional unemployment

A

Short term unemployment occurring when workers are in-between jobs.

69
Q

Demand pull inflation

A

Increases in the price level caused by increases in aggregate demand

70
Q

cost push inflation

A

Increases in the price level caused by increases in the costs of production

71
Q

Hysteresis

A

Unemployment causing unemployment

72
Q

Long-term unemployment

A

Unemployment lasting for more than a year

73
Q

Menu costs

A

The costs of changing prices due to inflation

74
Q

Shoeleather costs

A

Costs in terms of the extra time and effort involved in reducing money holdings

75
Q

Inflationary noise

A

The distortion of price signals caused by inflation

76
Q

Real interest rate

A

The nominal interest rate minus the inflation rate

77
Q

Fiscal drag

A

People’s income being dragged into higher tax bands as a result of tax brackets not being adjusted in line with inflation

78
Q

Exchange rate

A

The price of one currency in terms of another currency or currencies

79
Q

Fiscal policy

A

The taxation and spending decisions of a government

80
Q

Monetary policy

A

Central bank and/or government decisions on the rate of interest, the money supply and the exchange rate

81
Q

Supply side policies

A

Policies designed to increase aggregate supply by improving the efficiency of labour and product markets

82
Q

reflationary

A

Of policy measures designed to increase aggregate demand

83
Q

Deflationary

A

Of policy measures designed to reduce aggregate demand

84
Q

Discretionary fiscal policy

A

Deliberate changes in government spending and taxation designed to influence aggregate demand.

85
Q

Automatic stabilisers

A

Forms of government spending and taxation that change automatically to offset fluctuations in economic activity

86
Q

Economic cycle

A

The tendency for economic activity to fluctuate outside its trend growth rate, moving from a high level of economic activity (boom) to negative economic growth (recession)

87
Q

Progressive tax

A

A tax that takes a higher percentage from the income of the rich

88
Q

Regressive tax

A

A tax that takes a greater percentage from the income of the poor

89
Q

Recession

A

A fall In real GDP over a period of six months or more

90
Q

Human capital

A

Education, training and experience that a worker, or group of workers , possesses.

91
Q

Tariff

A

A tax on imports

92
Q

Quota

A

A limit on imports

93
Q

Occupational immobility of labour

A

Difficulty in moving from one type of job to another

94
Q

Protectionism

A

The protection of domestic industries from foreign competition

95
Q

Voluntary export restraint

A

A limit placed on imports from a country with the agreement of that country’s government

Economics AS (Macroeconomics) (13 decks)

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