Save
Busy. Please wait.
Log in with Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Economics

Unit 2 definitions

TermDefinition
Inflation A sustained increase in the a sustained increase in the average price level of goods and services in a country
frictional unemployment unemployment caused by people moving between jobs
seasonal unemployment Unemployment caused by declines in different industries during different parts of the year
cyclical unemployment unemployment caused by the trade cycle
structural unemployment unemployment caused by a demand or supply side change
demand pull inflation where aggregate demand exceeds aggregate supply, causing an increase in prices
cost push inflation where the costs of production increase, thereby causing the firm to compensate by increasing prices
Aggregate Demand The total demand in an economy, calculated by the formula AD=C+I+G+(X-M)
Aggregate Supply The total value of goods and services supplied in an economy
Economic Growth An increase in real gdp OR an increase in the economies productive capacity
Negative output gap where aggregate demand is below the productive capacity of an economy
positive output gap where actual growth is above trend growth , so inflationary pressures are higher
Trade off An exchange between two choices as a compromise
Leakages any money that exits an economy thereby causing it to shrink, e.g. Imports
Injections Money that originates outside the circular flow of income, therefore contributes to growth
Nominal GDP GDP that is not adjusted for inflation
Real GDP GDP adjusted for the rate of inflation
GDP per capita GDP/capita is an indicator of living standards and is calculated by total GDP divided by total population
weighting where a commodity is given a weighting proportional to its importance to the average household
Recession when there is negative growth for at least two consecutive quarters
Balance of payments BoP is the total value of exports minus the total value of imports
Multiplier effect when an increase in any component of aggregate demand leads to a larger than proportional increase in GDP.
Investment spending by firms on machinerey, buildings and other capital
Budget Government expenditure minus revenue
Fiscal Policies Policies that attempt to stimulate growth by manipulating government revenue and expenditure
Disposable income income available to spend after national insurance contributions and income tax
Accelerator effect The accelerator effect states that investment will increase when the rate of change in income is high, not necessarily when the level of income is high.
Wealth effect The wealth effect states that an individuals spending is influenced by the value of his wealth
supply side shock something that will increase or decrease the costs of firms, such as a large increase in oil prices.
demand side shock something that will increase aggregate demand, such as higher interest rates
RPI/CPI RPI/CPI is an indicator of the rate of inflation
deflation a sustained decrease in the average price level of goods and services in a country
exchange rate The rate at which one currency can be exchanged for another
balance of trade value of visible exports minus value of visible imports
Interest rate The rate at which money can be borrowed, and the rate at which savers are rewarded.
Monetary Policy Policy to stimulate economic growth through the manipulation of interest rates,the exchange rate or the money supply.
Money supply The total amount of money in an economy
Unemployed Those of working age without a job who are actively seeking employment.
Created by: samfisher2013
Popular Finance sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards