terminology
Concepts
further concepts
True or false
100

examines the behaviour of individual decision making units in a economy

microeconomics

100

Increase in consumer expenditure

Increases aggregate demand

100

These are the free forces that coordinates the market without government intervention as mentioned in Adam Smith's invisible hand

demand and supply

100

Indirect taxes shift the supply curve

True 

200

Total output measured in constant prices 

Real GDP

200

A decline in GDP over at least two consecutive quarters

Recession

200

The point at which market tends to remain stable .

Equilibrium

200

Indirect taxes lead to welfare loss

True

300

Total output measured in current prices

Nominal GDP

300

Shift in PPC

increase in productive capacity/ potential growth

300

Social surplus or welfare benefits that are lost to society because resources are not allocated efficienty

dead weight loss

300

Price floors give rise to shortages

False

400

The measure of comparing price level over time

Price index

400

Increase in imports

reduces aggregate demand

400

Consumer surplus when elasticity of demand is inelastic 

Infinity

400

Buying and selling transactions that go unrecorded and are often illegal exist in unorganised economy

False.

500

The price index of all domestically produced output

GDP deflator

500

Aggregate demand meets aggregate supply

Macroeconomic equilibrium

500

The curve that illustrates the YEDs of a product

Engel curve

500

A higher tax burden leads to higher percentage of GDP taken away as tax

True