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

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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

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3
Q

INvestment

A

Expenditure made by firms or individuals on capital assets that generate income in the future.

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4
Q

Comparative advantage

A

When an economy could produce a product at lower opportunity cost than other country

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5
Q

GDP

A

Value of goods and services produced in an economy over a period of time

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