Social Studies G.A 2.2 Flashcards
economic model which illustrates the flow of goods and finances among economic agents.
Circular Flow Program
refers to a market participant or institution that influences the flow of resources in the economy.
Economic agent
result of the free interaction between households and firms.
Simple Economy
are taxes mandatory
yes
what are taxes
mandatory contributions by individuals and companies to the government.
refer to government benefits and welfare payments such as pensions and welfare aids
Transfer payments
what is a closed economy
self- sufficient and does not trade with other economies.
short for aggregate supply and aggregate demand.
It follows the law of demand and law of supply.
AS-AD Model
represents the amount of goods and services in the economy that will be consumed at different price levels.
AD curve
AS curve
Represents the amount of goods and services available for consumption at different price levels.
refers to the GDP that has been adjusted for inflation.
.
Real GDP
GDP that has not taken into consideration the level of inflation.
Nominal GDP
What are the factors that influence Aggregate demand
Cost of Production
Cost of Other Inputs
Use of Technology
Cost of production
events or actions that make the cost of production expensive will shift the AS curve to the left.
Cost of other inputs
the change in cost of other production inputs, such as labor and capital.
