I AM A BIG DEAL NOT A MINOR ISSUE
This is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year.
what is the balance of payment
This is a shortfall in a government's income compared with its spending. The government is spending beyond its means.
what is a fiscal deficit
This demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products. In short, an economy is an endless circular flow of money.
what is the circular flow model
This is an economic measurement of the total demand for all finished goods and services produced in an economy; it is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.
What is aggregate demand
This measures the percentage of income that is spent rather than saved. This may be calculated by a single individual who wants to know where the money is going or by an economist who wants to track the spending and saving habits of an entire nation.
what is the average propensity to consume
this is the value of one nation's currency versus the currency of another nation or economic zone
what is exchange rate
This is an unadjusted weighted average rate at which one country's currency exchanges for a basket of multiple foreign currencies. This is the amount of domestic currency needed to purchase foreign currency.
what is the nominal exchange rate
This is an annual measure of the economic output of a nation that is adjusted to account for depreciation and is calculated by subtracting depreciation from the gross domestic product (GDP).
what is net domestic product
This is the total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy.
what is consumer spending
This is an economic formula that represents the functional relationship between total consumption and gross national income. It was introduced by British economist John Maynard Keynes, who argued the function could be used to track and predict total aggregate consumption expenditures.
What is the consumption function
this is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time. It is the rise in the general level of prices where a unit of currency effectively buys less than it did in prior periods
what is inflation
This rate refers to the interest rate before taking inflation into account
what is the nominal interest rate
the total value of goods produced and services provided in a country for one year, after depreciation of capital goods has been allowed for.
what is a Net National Product
This is a measure of a nation's total trade. The value of a nation's total export goods and services minus the value of all the goods and services it imports
what is a net exports
Permanent income can be thought of as the average flow of income one expects to receive good years' income will be above its permanent level, and in bad years it will be below its permanent level. This difference between permanent and current income is referred to as ............................
What is transitory income
This is the amount a lender charges for the use of assets expressed as a percentage of the principal
this is an interest rate that has been adjusted to remove the effects of inflation to reflect the true cost of funds to the borrower and the true yield to the lender or to an investor.
what is the real interest rate
THE CONCEPT BEHIND CIRCULAR FLOW IS THAT OUTPUT INCOME AD EXPENDITURE SHOULD BE ...................
WHAT IS EQUAL
this is voluntary unemployment where workers refuse to work for a certain wage
what is real wage unemployment
this gap occurs if aggregate expenditure exceeds the potential output of the economy
what is the inflationary gap
This is an increase in the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms.
what is economic growth
This measure examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them
what is the consumer price index
REAL GDP MAY BE UNDERSTATED AND NOT REFLECT TRUE CHANGE IN OUTPUT THIS IS DUE TO THE EXISTENCE OF THE ................................
WHAT IS SHADOW OR HIDDEN ECONOMY
when aggregate demand and aggregate supply curve intersect the .............................and ...................are determined
what is the equilibrium level of output and price level
This used in relation to a particular depiction of the flow of income within a system, referred to as the circular flow of income and expenditure, in the Keynesian model of economics. Within this depiction, these are the non-consumption uses of income, including saving, taxes, and imports.
what are leakages