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A level Economics > Macroeconomics Year 1 > Flashcards

Macroeconomics Year 1 Flashcards

1
Q

Circular flow of income

A

Way in which income, money, goods and services flow in an economy

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2
Q

National income

A

All the incomes that flow to households over a period of time

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3
Q

National output

A

Value of all the output (goods and services) produced in an economy over a period of time

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4
Q

National expenditure

A

All the spending by households, firms and government over a period of time

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5
Q

Injections

A

Routes for money to enter the circular flow of income including through investment, government expenditure and exports

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6
Q

Leakages

A

Routes for money to leave the circular flow of income including through savings, taxation and imports

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7
Q

Aggregate demand

A

The ability and willingness of all economic agents to spend in the economy

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8
Q

Consumption

A

Spending by households on goods and services

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9
Q

Investment

A

Spending by firms on goods and services to be used in future production

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10
Q

Government expenditure

A

Spending by the government on goods and services, such as the NHS

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11
Q

Net exports

A

Exports minus imports

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12
Q

Exports

A

Foods and services that firms sell overseas

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13
Q

Imports

A

Goods and services that households and firms buy from overseas firms

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14
Q

Expectation

A

Views that economic agents have about what will happen to the economy in the future

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15
Q

Aggregate supply

A

Total supply of all goods and services produced within an economy at a given overall price at a given time

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16
Q

Short run aggregate supply (SRAS)

A

Goods and services that firms are willing and bale to produce at a given price level in the short run

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17
Q

Long run aggregate supply (LRAS)

A

The maximum that can be produced with all the factors of production in an economy

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18
Q

Neoclassical approach to aggregate supply

A

Approach to aggregate supply in which there is a short run curve (where output changes with price level) and a long run curve (where output does not change with price level)

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19
Q

Keynesian approach to aggregate supply

A

Approach to aggregate supply in which there is no distinction between SRAS and LRAS. One AS curve can show both the short and the long run

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20
Q

Macroeconomic equilibrium

A

Point at which aggregate demand equals aggregate supply

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21
Q

National income multiplier

A

Ratio of a change in equilibrium real income to the autonomous change that bought it about

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22
Q

Accelerator

A

Theory by which the level of investment depends on the rate of change in national income

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23
Q

Economic cycle

A

Fluctuation of the economy in periods of contraction and expansion around its underlying trend rate, following a regular pattern

24
Q

Output gap

A

Difference between the actual level of real GDP and the full employment level

25
Q

Economic growth

A

Change in national output over time as measured by GDP or GNP

26
Q

Nominal GDP

A

Gross domestic product at current prices. Inflation is not taken into account

27
Q

Real GDP

A

Gross domestic product at constant prices. Inflation is taken into account

28
Q

GDP per capita

A

Gross domestic product per head

29
Q

Economic development

A

Rise in people’s economic well-being and quality of life

30
Q

Primary sector

A

Any industry that is involved in the production or extraction of raw materials, such as farming, logging, fishing and mining

31
Q

Secondary sector

A

Any industry that is involved in processing the raw materials of the primary sector to create end-products, e.g. manufacturing, construction or assembly

32
Q

Tertiary sector

A

Production that includes the provision of services, not end-products, e.g. commerce, real estate, finance, administration and education

33
Q

Sustainable development

A

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

34
Q

GNI per capita

A

Dollar value of a country’s final income in a year, divided by its population

35
Q

Human development index (HDI)

A

Composite indicator of economic development made up of three parts: GNI per capita, life expectancy at birth, and mean and expected years of schooling. HDI values range from 0 to 1

36
Q

Employment rate

A

Proportion of the working age population in work

37
Q

Unemployment rate

A

Proportion of the working age population seeking work (economically active) but who do not have a job

38
Q

Voluntary unemployment

A

When an individual chooses not to accept a job at the going wage rate

39
Q

Involuntary unemployment

A

When an individual would like to accept a job at the going wage rate but is unable to find employment

40
Q

Labour market participation rate

A

Proportion of working age people who are economically active (in employment or actively seeking employment)

41
Q

Economically inactive

A

Working age people who are neither in employment nor unemployed and so are not part of the labour force

42
Q

Full employment

A

When all those who are economically active and willing and bale to work (at the going wage rate) have a job

43
Q

Frictional unemployment

A

Unemployment associated with job search, i.e. those who are between jobs

44
Q

Occupational immobility

A

Barriers to workers changing occupations

45
Q

Labour force survey

A

Measure of the percentage of the work force who are without jobs but are available for work, looking for work and willing to work

46
Q

Geographical immobility

A

Barriers to the movement of workers between different regions

47
Q

Discouraged workers

A

Those who have been unable to find employment and who are no longer looking for work

48
Q

Inflation

A

Increase in the average price level measured by a weighted basket of goods

49
Q

Deflation

A

Decrease in the average price level measured by a weighted basket of goods

50
Q

Disinflation

A

A fall in the rate of inflation

51
Q

Hyperinflation

A

Excessively high rate of inflation

52
Q

Real values

A

Values adjusted for inflation, at constant prices

53
Q

Nominal values

A

Values unadjusted for inflation, at current prices

54
Q

Balance of payments

A

Record of the transactions conducted between residents of a country and the rest of the world

55
Q
A

A level Economics (2 decks)

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