Macroeconomics A-C Flashcards
AD
The total demand in the economy including consumption, investment, government expenditure and exports minus imports.
AS
Total amount of goods and services produced in a country at a given price level at a given time.
Austerity
Official action taken by the government in order to reduce the amount to that people spend
Balance of Payments
Record of all transactions relating to international trade
Base Rate
Rate if interest set by the government or regional central banks for lending to other banks, which in turn influences all other rates in the economy
Budget Deficit
Amount by which government spending is greater than government revenue
Capital and Financial Account
That part of the balance of payments where flows of savings, investment and currencies are recorded
CPI
Measure of the general price levels.
Contractionary Fiscal Policies
Fiscal measures designed to reduce demand in the economy.
Cost-Push Inflation
Inflation caused by rising business costs.
Current Account
Part of the balance of payments where all exports and imports are recorded.
Current Account Deficit
When the value of imports exceeds the value of exports
Current Account Surplus
When the value of exports exceeds the value of imports
Current Balance
Difference between total exports and total imports (visible and invisible)
Cyclical/Demand Deficient Unemployment
Unemployment caused by falling demand as a result of a downturn in the economic cycle
