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Related Flashcards
Related Topics
Cards In This Set
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Price Level
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Average of each of the prices of all the products produced in the economy
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Investment
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Spending on capital goods
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Exports
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Products sold abroad
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Consumer Expenditure
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Spending by households on consumer products
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Imports
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Products bought from abroad
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Net Exports
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The Value of exports minus the value of imports
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Multiplier effect
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The process by which any change in a component of aggregate demand results in a greater final change in real GDP.
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Leakages
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Withdrawals of possible spending from the circular flow
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Injections
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Additions of extra spending into the circular flow of income
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Circular flow of income
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The movement of spending and income throughout the economy
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Factor Services
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The services provided by the factors of production
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Macroeconomic Equilibrium
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A situation where aggregate demand equals aggregate supply and real GDP is not changing
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Aggregate Supply
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The total amount that producers in an economy are willing and able to supply at a given price level in a given period of time
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Consumer Confidence
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How optimistic consumers are about the future economic prospects
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Inflation
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A sustained rise in the price level
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