Macroeconomics Flashcards
What are the:
6 economic objectives
- stable economic growth
- Low inflation
- low unemployment
- A balance of payments equilibrium and exchange rate stability
- Protecting the environment
- Reduce inequality in our society
What is:
Economic growth
The percentage increase in real GDP in an economy over a period of time. Economic growth is often measured using GDP and expressed as a percentage change in real GDP.
What is:
Gross domestic product
the total value of output of goods and services produced in an economy over a period of time
What is:
Real stats
stats that have been adjusted for inflation
What is the:
Economic cycle
The period of time where economic growth fluctuates. For example: boom, recession, recovery and downturn
What is the:
Boom
The peak of economic cycle where GDP is growing at its fastest
What is:
Downturn
Period in the economic cycle where GDP grows but more slowly
What is:
Recession
Period of temporary economic decline which is generally identified by a fall in GDP for 6 montsh
What is:
Recovery
Period in the economic cycle where GDP starts to rise again. Businesses and consumers regain their confidence and economic activity is on the increase
What is:
Aggregate demand
the total demand in the economy (C + I + G + (X-M))
What is:
Aggregate supply
The total amount of goods and services produced in a country at a given price level in a given period of time
What is:
Overheat
When demand is rising too fast causing prices to rise which leads to a situation where governments try to rectify the problem by raising taxes of raising intrest rates
What is:
Human capital
The level of skill and education of the workforce
What is:
National income
The value of all income in the economy added together which includes income from wages, profits, dividends, intrest and other income earned from abroad
What is:
Seasonal unemployment
When workers are unemployed as when the seasons change the demand goes down
