Macroeconomic definitions Flashcards
(95 cards)
Aggregate demand
The total demand for a country’s goods and services at a given price level and in a given time period
Price level
The average of each of the prices of all the products produced in an economy
Consumer expenditure
Spending by households on consumer products
investment
Spending on capital goods
Government spending
Spending by the central government and local government on goods and services
Exports
Products sold abroad
Imports
Products bought from abroad
Net exports
The value of exports minus the value of imports
Transfer payments
Money transferred from one person or group to another not in return for any good or service
Job seeker’s allowance
A benefit paid by the government to those unemployed and trying to find a job
Trade surplus
The value of exports exceeding the value of imports
Trade deficit
The value of imports exceeding the value of exports
Consumer confidence
How optimistic consumers are about future economic prospects
rate of interest
The charge for borrowing money and the amount paid for lending money
Average propensity to consume
The proportion of disposable income spent. It is consumer expenditure divided by disposable income
Net savers
People who save more than they borrow
Wealth
A stock of assets, e.g. property, shares and money held in a savings account
Distribution of income
How income is shared out between households in a country
Inflation
A sustained rise in the price level
Saving
Real disposable income minus spending
Average propensity to save
The proportion of disposable income saved. It is saving divided by disposable income
Target savers
People who save with a target figure in mind
Dissave
Spending more than disposable income
Savings ratio
Savings as a proportion of disposable income