Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics - Macroeconomics > Keywords > Flashcards

Keywords Flashcards

1
Q

accelerator

A

a change in the level of investment in new capital goods is induced by a change in the rate of growth of national income or aggregate demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

actual output

A

level of real output produced in the economy in a particular year, not to be confused with the trend level of output. the trend level of output is what the economy is capable of producing when working at full capacity. actual output differs from the trend level of output when there are output gaps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

aggregate demand

A

the total planned spending on real output produced within the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

aggregate supply

A

the level of real national output that producers are prepared to supply at different average price levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

availability of credit

A

funds available for households and firms to borrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

balance of payments

A

a record of all the currency flows into and out of a country in a particular time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

balance of payments equilibrium

current account equilibrium

A

occurs when the current account more or less balances over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

balance of trade

A

the difference between the money value of a country’s imports and its exports. balance of trade is the largest component of a country’s balance of payments on current account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

balance of trade deficit

A

the money value of a country’s imports exceeds the money value of its exports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

balance of trade in goods

A

the part of the current account measuring payments for exports and imports of goods. the difference between the total value of exports and the total value of imports of good is sometimes called the balance of visible trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

balance of trade in services

A

is part of the current account and is the difference between the payments for the exports of services and the payments for the imports of services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

balance of trade surplus

A

the money value of a country’s exports exceeds the money value of its imports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

balanced budget

A

achieved when government spending equals government revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Bank of England

A

the central bank in the UK economy which is in charge of monetary policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Bank rate

A

the rate of interest the Bank of England pays to commercial banks on their deposits held at the Bank of England

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

budget deficit

A

occurs when government spending exceeds government revenue. this represents a net injection of demand into the circular flow of income and hence a budget surplus is contractionary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

central bank

A

controls the banking system and implements monetary policy on behalf of the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

certainty

A

one of the principles of taxation. tax payers should be reasonably certain of the amount of tax they will be expected to pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

claimant count

A

the method of measuring unemployment according to those people who are claiming unemployment related benefits (jobseekers allowance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

closed economy

A

an economy with no international trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

consumer prices index (CPI)

A

the official measure used to calculate the rate of consumer price inflation in the UK. the CPI calculates the average price increase of a basket of 700 different consumer goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

consumption

A

total planned spending by households on consumer goods and services produce within the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

contractionary fiscal policy

A

uses fiscal policy to decrease aggregate demand and to the AD curve to the left

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

contractionary monetary policy

A

uses higher interest rates and other monetary tools to decrease aggregate demand and to shift the A to the left

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

convenience

A

the principle of taxation which requires a tax to be convenient for taxpayers to pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

cost push inflation

A

a rising price level caused by an increase in the costs of production, shown by a shift of the SRAS curve to the left. also known as cost inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

credit crunch

A

occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to obtain financing, and leads to a rise in the cost of borrowing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

crowding out

A

a situation in which an increase in government or public sector spending displaces private sector spending, with little or no increase in aggregate demand

29
Q

current account deficit

A

occurs when currency outflows in the current account exceed currency inflows. it is often shortened to exports less than imports

30
Q

current account of the balance of payments

A

measures all the currency flows into and out of a country in a particular time period in payment for exports and imports, together with income and transfer flows (primary income and secondary income flows)

31
Q

current account surplus

A

occurs when currency inflows in the current account exceed currency outflows. it is often shortened to exports greater than imports

32
Q

cyclical budget deficit

A

the part of the budget deficit which rises in the downswing of the economic cycle and falls in the upswing of the cycle

33
Q

cyclical budget surplus

A

if the structural deficit were zero, a cyclical surplus would probably emerge in the upswing of the economic cycle

34
Q 
cyclical unemployment 
(Keynesian unemployment and demand deficient unemployment)
A

as the latter name suggests, it is unemployment caused by a lack of aggregate demand in the economy and occurs when the economy goes into recession or depression

35
Q

deficit financing

A

deliberately running a budget deficit and borrowing to finance the deficit

36
Q

deflation

A

a persistent or continuing fall in the average price level

37
Q

deindustrialisation

A

the decline of manufacturing industries, together with coal mining

38
Q

demand side

A

relates to the impact of changes in aggregate demand on the economy. associated with Keynesian economics

39
Q

demand pull inflation

A

a rising price level caused by an increase in aggregate demand, sown by a shift of the AD curve to the right. (demand inflation)

40
Q

demand side fiscal policy

A

used to increase or decrease the level of aggregate demand (and to shift the AD to the left or right) through changes in government spending, taxation and the budget balance

41
Q

deregulation

A

involves removing previously imposed regulations. it Is the opposite of regulations

42
Q

direct tax

A

a tax which cannot be shifted by the person legally liable to pay the tax onto someone else. direct taxes are levied on income and wealth

43
Q

discretionary fiscal policy

A

involves making discrete changes to G, T and the budget deficit to manage the level of aggregate demand

44
Q

disinflation

A

when the rate of inflation is falling, but still positive and the price level is rising more slowly than previously

45
Q

distribution of income

A

the spread of different incomes among individuals and different income groups in the economy

46
Q

economic cycle

A

upswing and downside in aggregate economic activity taking place over 4 to 12 years (business cycle or trade cycle)

47
Q

economic performance

A

success or failure in achieving economic policy objectives

48
Q

economic recovery

A

when short run economic growth takes place after a recession

49
Q

economic shock

A

an unexpected event hitting the economy. economic shocks can be demand side r supply side shocks and unfavourable or favourable

50
Q

economy

A

the principle of taxation which requires a tax to be cheap to collect in relation to the revenue it yields

51
Q

efficiency (principle of taxation)

A

a tax should achieve its desired objectives with minimum unintended consequences

52
Q

emerging market country

A

a country that is progressing towards becoming more economically advance, by means of rapid growth and industrialisation

53
Q

equation of exchange

A

the stock of money in the economy multiplied by the velocity of circulation of money equals the price level multiplied by the quantity of real output in the economy

54
Q

equilibrium unemployment

A

exists when the economy’s aggregate labour market is in equilibrium. it is the same as the natural level of unemployment

55
Q

equilibrium national income

A

the level of real output at which aggregate demand equals aggregate supply. AD=AS
alternatively, it is the level of income at which withdrawals from the circular flow of income equal injections into the flow. also known as macroeconomic equilibrium

56
Q

equity (principle of taxation)

A

requires a tax to be fair

57
Q

exchange rate

A

the price of a currency

58
Q

expansionary fiscal policy

A

uses fiscal policy to increase aggregate demand and to shift the AD curve to the right

59
Q

expansionary monetary policy

A

uses lower interest rates and other monetary instruments (quantitative easing) to increase aggregate demand and to shift the AD curve to the right

60
Q

export led growth

A

in the short run, economic growth resulting from the increase in exports as a component of aggregate demand. in the long urn economic growth resulting from the growth and increased international competitiveness of exporting industries

61
Q

exports

A

domestically produced goods or services sold to residents of other countries

62
Q

fiscal policy

A

the use by the government of government spending and taxation to try to achieve the government’s policy objectives

63
Q

flexibility

A

the principle of taxation that requires a tax to be easy to change to meet new circumstances

64
Q

frictional unemployment

A

unemployment that is usually short term and occurs when a worker switches between jobs
(transitional unemployment)

65
Q

full employment

A

according to Beveridge’s definition, full employment means 3% or less of the labour force unemployed
it is the level of employment occurring at the market clearing real wage rate where the number of workers whom employers which to hire equals the number of workers wanting to work

66
Q

geographical immobility of labour

A

when workers are unwilling or unable to move from one area to another in search of work

67
Q

gross domestic product (GDP)

A

the sum of all goods and services or level of output produced in the economy over a period of time

68
Q

import cost inflation

A

a rising price level caused by an increase in the cost of imported energy, food, raw materials and manufactured goods, shown by a shift of the SRAS curve to the left

Economics - Macroeconomics (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions