Besnik Vrellaku____
Economics Revision
KEY TERMS
Economic growth - in the short run, an increase in real GDP, and in the want run, an increase in productionive capacity, that is, in the maximum fruit that the economy can produce.
Unemployment - a situation where people atomic number 18 out of work but are will and able to work.
Inflation - a sustained rise in the scathe train; the percentage increase in the wrong take aim over a period of time.
Gross domestic product (GDP) - the total output of goods and services produced in a country
amount of money shoot (AD) - the total demand for a countrys goods and services at a given price level and in a given time period.
Aggregate demand (AS) - the total amount that producers in an economy are willing and able to tot at a given price level in a given time period.
multiplier factor effect - the process by which any change in a component of aggregate demand results in a greater final change in real GDP.
Supply-side policies - policies intentional to increase aggregate supply by improving the efficacy of labour and product markets.
Monetary policy - central bevel and/or government decisions on the rate of interest, the money supply and the exchange rate.
Fiscal policy - the taxation and spending decisions of a government.
Aggregate demand (AD)
The components of aggregate demand - spending by households on goods and services
- Investment
- Spending on capital goods (machines, office buildings)
- politics spending
- Net exports add foreigner
Consumer expenditure - real disposable income, this is the main(prenominal) influence on...If you want to get a full essay, smart set it on our website: Orderessay
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