The total demand for a country's goods and services at a given price level and in a given time period.
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Aggregate supply
The total amount that producers in an economy are willing and able to supply at a given price level in a given time period.
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Balance of payments
A record of money flows coming in and out of a country.
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Circular flow of income
The movement of spending and income throughout the economy.
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Consumer expenditure
Spending by households on consumer products.
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Cost-push inflation
Increases in the price level caused by increases in the costs of production.
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Cyclical unemployment
Unemployment arising from a lack of aggregate demand.
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Demand-pull inflation.
Increases in the price level caused by increases in the costs of production.
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Economic growth
In the short run, an increase in real GDP. In the long run, an increase in productive capacity that the economy can produce.
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Exports
products sold abroad.
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Fiscal policy
The taxation and spending decisions of a government.
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Frictional unemployment
Short term unemployment occuring when workers are in-between jobs.
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Full employment.
A situation where those wanting and able to work can find employment at the going wage rate.
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Government spending.
Spending by the central park and local government on goods and services.
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Gross domestic product (GDP).
The total output of goods and services produced in a country.
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Imports
Products bought from abroad.
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Inflation
A sustained rise in the price level; the percentage increase in the price level over a period of time.
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Informal economy.
Economic activity that is not recorded or registered with the authorities in order to avoid paying tax or complying with regulations, or because the activity is illegal.
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Investment
Spending of capital goods.
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Labour force survey.
A measure of unemployment based on a survey using the ILO definition of unemployment.
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Macroeconomics
The study of issues that affect economies as a whole.
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Menu costs
The costs of changing prices due to inflation.
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Monetary policy.
Central bank and/or government decisions on a rate of interest, the money supply and the exchange rate.
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Multiplier effect.
The process by which any change in a component of aggregate demand results in a greater final change in real GDP.
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Nominal GDP
Output measured in current prices and so not adjusted for inflation.
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Protectionism.
The protection of domestic industries from foreign competitors.
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Quota
A limit on exports
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Real GDP
The country's output measured in constant prices and so adjusted for inflation.
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Shoe-leather costs
Costs in terms of the extra time and effort involved in reducing money holding.
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Structural unemployment.
Unemployment caused by the decline of certain industries and occupations due to changes in demand and supply.
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Tariff
A tax on imports.
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Trade deficit
The value of imports exceeding the value of exports.
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Unemployment.
A situation where people are out of work, but are willing and able to work.
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Other cards in this set
Card 2
Front
The total amount that producers in an economy are willing and able to supply at a given price level in a given time period.
Back
Aggregate supply
Card 3
Front
A record of money flows coming in and out of a country.
Back
Card 4
Front
The movement of spending and income throughout the economy.
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