macro definitions + market power

Question 1

aggregate demand

Answer 1

values of total demand for all goods and services in the economy for a time period at all price levels

Question 2

gdp

Answer 2

total market values of all final goods and services produced inside the economy in a period of time

Question 3

gni

Answer 3

total income received by residents of a country, regardless of where the factors are located

Question 4

real gdp

Answer 4

total market values of all final goods and services produced inside the economy in a period of time accounting inflation

Question 5

sustainability

Answer 5

situation that we can meet the needs of the current generation without compromising the needs of the future generation

Question 6

infrastructure

Answer 6

large scale of public system provided by the government to increase productivity

Question 7

investment

Answer 7

expense spent by the firms to buy capitals

Question 8

business confidence

Answer 8

expectations of firms to future profit

Question 9

consumer confidence

Answer 9

expectation of households to future income

Question 10

foreign direct investment

Answer 10

long term investment from multinational cooperations form the foreign economy to the hosting economy

Question 11

aggregate supply

Answer 11

total planned national output being produced at different price levels

Question 12

deflationary gap

Answer 12

when output equilibrium is below the optimal output

Question 13

inflationary gap

Answer 13

when the equilibrium output is greater than the optimal output

Question 14

gdp

Answer 14

market value of all final goods and services produced in an economy over a time period

Question 15

nominal gdp

Answer 15

measured using the current market prices

Question 16

green gdp

Answer 16

index of economic growth while considering the environmental consequences of the economic growth factored in

Question 17

inflation

Answer 17

sustained increase in the general price level for goods and services in an economy

Question 18

disinflation

Answer 18

inflation improving but still persisting

Question 19

consumer price index

Answer 19

measures cost of living for a typical household in an economy

Question 20

menu costs

Answer 20

cost spent on updating the catalogues

Question 21

production possibility curve

Answer 21

shows combinations of maximum output that can be produced by an economy with fixed resources and technology

Question 22

equality

Answer 22

each individual or group of people is given the same resources or opportunities

Question 23

equity

Answer 23

situation that recognises that each person has different circumstances and allocates the exact resources and opportunities needed to reach an equal outcome

Question 24

absolute poverty

Answer 24

people with income level less than USD 2.5, the extreme poverty line, and cant afford basic physical needs

Question 25

relative poverty

Answer 25

compares income of individuals with median incomes

Question 26

transfer payments

Answer 26

payments made by the government for which no goods and services are exchange, such as unemployment benefits and subsidies

Question 27

economic growth

Answer 27

increase in real output overtime

Question 28

economic development

Answer 28

increase well-being of households in multiple dimensions, increase income, income equality, health etc

Question 29

monopoly

Answer 29

only one dominant seller in the market, with high entry barriers and imperfect information

Question 30

relative poverty

Answer 30

income earned is below a certain percentage of the median income in the social class the individual is in

Question 31

monetary policy

Answer 31

changes in interest rates or money supply by the central bank or demand side policies