examines the behaviour of individual decision making units in a economy
microeconomics
Increase in consumer expenditure
Increases aggregate demand
These are the free forces that coordinates the market without government intervention as mentioned in Adam Smith's invisible hand
demand and supply
Indirect taxes shift the supply curve
True
Total output measured in constant prices
Real GDP
A decline in GDP over at least two consecutive quarters
Recession
The point at which market tends to remain stable .
Equilibrium
Indirect taxes lead to welfare loss
True
Total output measured in current prices
Nominal GDP
Shift in PPC
increase in productive capacity/ potential growth
Social surplus or welfare benefits that are lost to society because resources are not allocated efficienty
dead weight loss
Price floors give rise to shortages
False
The measure of comparing price level over time
Price index
Increase in imports
reduces aggregate demand
Consumer surplus when elasticity of demand is inelastic
Infinity
Buying and selling transactions that go unrecorded and are often illegal exist in unorganised economy
False.
The price index of all domestically produced output
GDP deflator
Aggregate demand meets aggregate supply
Macroeconomic equilibrium
The curve that illustrates the YEDs of a product
Engel curve
A higher tax burden leads to higher percentage of GDP taken away as tax
True