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Definitions: Year 1 Macro - AD/AS (free text)

Quiz by Mark Seccombe

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22 questions
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  • Q1
    The total amount of spending on goods and services produced in an economy during a period of time
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    30s
  • Q2
    The relationship between consumption and disposable income; its position depends on the other factors that affect how much households spend on consumption
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    30s
  • Q3
    Total expenditure by households on domestically produced goods and services
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  • Q4
    Expenditure undertaken to add to the capital stock. This spending can be done by firms or government.
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  • Q5
    Spending by the government on its day to day operations. This is known as current expenditure.
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  • Q6
    Value of exports minus the value of imports
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    30s
  • Q7
    The relationship between the level of aggregate demand and the overall price level; it shows planned expenditure at any given possible overall price level
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    30s
  • Q8
    A curve showing how much output firms would be prepared to supply in the short run at any given price level
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    30s
  • Q9
    A curve showing the productive capacity of the economy
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    30s
  • Q10
    The long-run equilibrium level of output to which monetarists believe the macroeconomy will always tend
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  • Q11
    The unemployment rate that will exist when the economy is in long-run equilibrium
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  • Q12
    A group of economists who believe that the macroeconomy always adjust rapidly to the full employment level of output, and that monetary policy should be the prime instrument for stabilising the economy
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  • Q13
    A group of economists who believed that the macroeconomy could settle at an equilibrium that was below full employment
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  • Q14
    A model of the economy which shows the movement of goods and services between households and firms and their corresponding payments in money terms
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  • Q15
    Where money flows out of the circular flow in the forms of savings, taxation and imports
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