What is Macroeconomics? Flashcards
1
Q
What are the four key macroeconomic objectives of the government?
A
Economic growth
Reduce employment
Stable prices
Stable current account on the balance of payments
2
Q
What does GDP stand for?
A
Gross Domestic Product
3
Q
What is GDP?
A
the total value of output produced in a given time period.
4
Q
What does AD stand for?
A
Aggregate Demand
5
Q
What is aggregate demand?
A
total demand across all of the economy
6
Q
What is the equation for GDP?
A
C + I + G + (X-M)
7
Q
What is the equation for AD?
A
C + I + G + (X-M)
