2314117
Description
Flashcards by erikacotton, updated more than 1 year ago
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Created by erikacotton
almost 11 years ago
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| Question | Answer |
| TRADE-OFF | calculation involved in deciding on whether to give up one good for another |
| BLACK MARKET | illegal market where products in short supply are traded at a price higher than the legal asking price |
| PROTECTIONISM | the protection of domestic industries from foreign competition |
| FRICTIONAL UNEMPLOYMENT | ST unemployment occuring when workers are in between jobs |
| DEMAND PULL INFLATION | A rise in the price level caused by an increase in AD |
| OUTPUT GAP | The difference between an economy's actual and potential real GDP |
| FISCAL DRAG | when income is gragged into higher tax bands because brackets have not been adjusted in line with inflation |
| MENU COSTS | costs of changing prices due to inflation |
| MONETARY POLICY | Central bank (UK) decisions on interest rates, money supply and exchange rate |
| TRADE DEFECIT | When the value of imports exceeds the value of exports |
| PRIVATISATION | transfer of assets from the public to private sector |
| COST-PUSH INFLATION | a rise in price level caused by an increase in costs of production |
| DEFLATIONARY POLICY | Policy measures desgined to REDUCE aggregate demand |
| REFLATIONARY | policy measures designed to INCREASE aggregate demand |
| FISCAL POLICY | Taxation and spending decisions made by the government |
| AUTOMATIC STABILISERS | forms of government spending that automatically offset fluctuations |
| HYSTERISIS | unemployment causing more unemployment |
| INFLATIONARY NOISE | distortion of price signals caused by inflation |
| THE WEALTH EFFECT | a fall in the price level increases the amount of goods that wealth can buy |
| MACRO DEFINITION | the study of issues that effect an economy as a whole |
| OCCUPATIONAL IMMOBILITY OF LABOUR | difficulty in moving from one type of job to another |
| INTERNATIONAL TRADE EFFECT | A rise in the price level will make the country's goods less internationally competitive |
| ECONOMIC GROWTH | an increase in a country's capacity to produce goods and services over time |
| SUPPLY SIDE POLICIES | policies designed to increase AS by improving the efficiency of both labour and product markets |
| DISCRETIONARY FISCAL POLICIES | Deliberate changes in G.spending + Tax. designed to influence AD |
| CYCLICAL UNEMPLOYMENT | Unemployment arising from a lack of AD |
| MULTIPLIER EFFECT | Any component change in AD results in greater final change in real GDP |
| VOLUNTARY EXPORT RESTRAINT | A limit placed on imports from another country with the agreement of that country's government |
| FACTORS AFFECTING INVESTMENT | -demand for a firms goods + services -current profit levels -corporation tax -rate of interest -advances in tech. -capacity + utilisation |
| FACTORS SHIFTING AD OUT.. | -rise in wage rate -fall in interest rate -increase in investment -good expectations |
| FACTORS SHIFTING AD IN.. | -fall in confidence -rise in exchange rate -fall in Yd |
| FACTORS SHIFTING AS OUT.. | -technological progress -lower production costs -improvements in education -higher productivity |
| FACTORS SHIFTING AS IN.. | -higher production costs -higher cost of raw materials -increases in wages -lower productivity |
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