Past Papers Flashcards
1
Q
Inflationary Gap
A
Is the excess of aggregate demand over full employment level of real GDP in an economy resulting in higher inflation, but on increase in real output
2
Q
Financial account
A
Is the net balance arising from flows of foreign direct investment (FDI), flows of portfolio investment, and changes in reserve assests
3
Q
INvestment
A
Expenditure made by firms or individuals on capital assets that generate income in the future.
4
Q
Comparative advantage
A
When an economy could produce a product at lower opportunity cost than other country
5
Q
GDP
A
Value of goods and services produced in an economy over a period of time
