Macroeconomics

Question 1

Injection

Answer 1

The spending on domestic output that does not originate from households

Question 2

Leakages

Answer 2

Income not spent on domestic goods and services

Question 3

Potential output

Answer 3

Output produced by an economy when it is a full employment

Question 4

Aggregate Demand

Answer 4

The planned spending on domestic goods and services at different average price levels over a period of time

Question 5

Aggregate Supply

Answer 5

The planned level of output firms are willing and able to offer at different average price levels over a period of time

Question 6

Full employment

Answer 6

A goal of macroeconomic policies that aims at fully utilizing the scare factores of production labour

Question 7

Inflationary gap

Answer 7

The case where equillibrium real output exceeds potential output

Question 8

Deflationary gap

Answer 8

Aries when the equillibruim level of real output is less then potential output

Question 9

Economic well being

Answer 9

A multi dimensional concept relating to the level of preosperity and the qualty of living in an economy

Question 10

Equity

Answer 10

Refers to the concept of fairness in an economy