MACRO ECONOMICS

Questão	Responda
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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	Criado por erikacotton mais de 9 anos atrás